Online video service runs out of Joost

 

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By Barry Collins

Posted on 1 Jul 2009 at 08:40

Joost, the online video service set up by the founders of Skype, is ripping up its business plan in an attempt to find some much-needed cash.

Joost has until now operated as a web-only broadcaster, first delivering programmes via its dedicated P2P client, and latterly as a browser-based video service.

The service won many admirers for its intuitive software and picture quality, but Joost has struggled to attract viewers because of a lack of premium content, which is freely available from rivals such as the BBC iPlayer and Hulu.

Now the company says it will focus on selling its platform to broadcasters and media companies, rather than relying solely on advertising.

"In these tough economic times, it's been increasingly challenging to operate as an independent, ad-supported online video platform," says outgoing CEO Mike Volpi, who will remain with the company as chairman of the board. "In order to position ourselves well for the future, we began investigating additional lines of revenue for Joost."

"After much analysis, we have decided to change our focus and to start providing white label online video platforms for media companies and distributors.

"We have built a solid technology platform that there is demand for in the marketplace, and look forward to this new chapter for our company. At the same time, we'll continue to operate Joost.com and its associated video applications."

Joost is making an undisclosed number of lay-offs as part of its restructuring.