They are keeping some staff (ie rehiring some) under a new name. Stream is a little a head of its time, the infrastructure needs to be expanded, especially since over half the bandwidth used in the US is from Netflix so alot of improvement is need to support more streaming companies and them to preform well.
Kotaku updated news story.
http://kotaku.com/5935767/onlive-filing-for-bankruptcy-new-company-to-take-its-place







