The list of major players in the web video market has been reduced by one. Today it was announced that Joost will be leaving the free web video business.
Or as outgoing Joost CEO Mike Volpi said “it’s been increasingly challenging to operate as an independent, ad-supported online video platform”.
If you’re not familiar with Joost, they are (or were) a lot like Hulu…they provide user’s with access to premium web video content (TV shows and movies)…and run advertisements in these videos. They were founded by the guys who create Skype.
So instead of going the free yet advertiser supported route, they are changing gears and providing their technology as white label solutions for media companies. Or in other words, they are turning into a CDN of sorts (content delivery network).
It’s a smart move on their part and I wouldn’t be surprised to see other major players follow the same path in the future.