The tale of Joost, the would-be online video heavyweight, is almost at an end. Most of the company’s remaining assets have been sold off to Adconion Media Group, the two companies announced today.
What happens to a start-up whose business never materializes? One option is to try to peddle the company based on the value of its human capital–aka the “acqhire.” Or would-be employers can simply wait for the start-up to flame out, then pick up the people they want on an a-la-carte basis. Did that just happen with Time Warner Cable and former Joost CTO Jason Gaedtke?
Now that Joost has given up the ghost and bailed out of the Web video portal business, who’s next? A good bet: Veoh, one of the best-funded would-be YouTubes. Multiple sources tell me the company is aggressively marketing itself to would-be buyers, and it’s asking for less than the $70 million investors like Michael Eisner have plowed into the company. Meanwhile, rival MetaCafe is looking for a “strategic investor.”
Here’s the beginning of the inevitable online video shakeout: Joost, the once-hyped video service that was supposed to rival Google’s YouTube, is restructuring to focus on “white label” services, i.e., a back end for other video players.
The site is laying off the majority of its 100-plus employees, and CEO Mike Volpi is out, replaced by Matt Zelesko, who had been SVP of engineering.
Web video publishers are still trying to get their heads around their existing sites, which attract plenty of eyeballs but not much in the way of ad dollars. But at some point they’re going to have to figure out what will happen as video moves from the PC to the phone.
Here’s one small step in that evolution: Joost, the once-hyped video site, is going to start selling ads for stuff it shows via its iPhone app. Doing the heavy lifting will be FreeWheel, a well-regarded start-up that already handles ad-serving for some of the Web’s biggest video players.
Lots of news emanating from Hulu today–but nothing ground-moving. That could still come in the near future: I keep hearing that the joint venture between NBC and Fox is getting close to a deal to bring ABC into the fold. But no confirmation yet. In the meantime, Hulu wants you to know that it’s the biggest video site that isn’t YouTube, and that it now boasts some social-network-like features.
Sling.com will soon get Viacom shows like “SpongeBob Squarepants,” which you can see on Joost but not on Hulu or YouTube. Confused? Of course you are. And Hollywood wonders why pirate sites are popular.
The Obama presidency-to-be has already provided a boost for media companies. So it will be nearly impossible to boot up your browser and not end up watching a live stream of the pomp and circumstance–we’ll even have coverage at All Things Digital! But here’s a guide, just in case your online venue of choice gets the hiccups.
File under “interesting, but understandable”: After a flurry of election-related interest in October, traffic to red-hot Hulu fell off in November. Blame Sarah Palin–or the lack of her.
Peter Kafka has been covering media and technology since 1997, when he joined the staff of Forbes magazine. Most recently, he has been the managing editor of the tech and media Web site, Silicon Alley Insider. Read more »
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