New Strategy for Joost

NEW YORK/LONDON: Joost, the Internet TV platform from Skype’s founders that launched with much fanfare in 2007, is shifting away from the direct-to-consumer model, opting now to focus on assisting media companies that are looking to launch their own branded video platforms.

Skype’s founders, Janus Friis and Niklas Zennstrom, led the development of Joost—first dubbed the Venice Project—promising to combine “the best of TV and the best of the Internet” with a “TV-like experience enhanced with the choice, control and flexibility of Web 2.0", all powered by a “piracy-proof” Internet platform, a company announcement said at the time.

Launched in the middle of 2007, Joost struggled to line up marquee content suppliers and was soon trumped in usage by destinations like Hulu. Earlier this year, the company was reported to be looking for a buyer, positioning itself as an online video solution for cable and satellite platforms. It confirmed its new strategy today when it announced it would focus on providing white label online video platforms for media companies looking to build branded online content destinations, including cable and satellite providers, broadcasters and video aggregators. Joost says it can provide a cost-effective, end-to-end solution for media companies to publish video under their own brands.

With this change in direction, Joost is closing its Dutch office and will maintain "core" teams in New York and London. Mike Volpi is stepping down as CEO but will remain as chairman. Matt Zelesko, currently senior VP of engineering at Joost, will take over as CEO while continuing to lead the engineering organization. Stacey Seltzer, currently senior VP of international business development and content acquisition at Joost, will run the business operations.