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July 1, 2009

Joost Business Model at CrossRoads

Joost Reinvents Itself — Again - Bits Blog - NYTimes.com: "Joost, the online video site, is starting over with a new service and business model, the third in as many years.

On Tuesday, the start-up, which will continue to offer free online television shows and movies, announced that it would shift its energies to providing an online video platform that other media companies can use — essentially licensing its technology to broadcasters and other media companies that want to offer video on their sites.

Matt Zelesko, currently senior vice president of engineering, will take over as chief executive from Mike Volpi, who will remain chairman. Joost will also close its Netherlands office and lay off a large number of employees — as many as 70 of its 90, Advertising Age reported. Kerry Vance, a Joost spokeswoman, said Joost is not commenting on the number of people being laid off.

Joost is yet another example of an ad-supported Web company that has found it too difficult to make money on ads alone as marketing budgets have shrunk. In a post on the company blog, Mr. Volpi blamed the changes on tough economic times. “It’s been increasingly challenging to operate as an independent, ad-supported online video platform,” he wrote. “In order to position ourselves well for the future, we began investigating additional lines of revenue for Joost.”"

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