Joost: Hindered by American Stupidity

Not like "you are stupid" stupidity, more like "you didn't pay attention to who you elected or what they did" stupidity. Its not big secret that America, inventor of the internet, is somewhere down the list past Slovenia in terms of broadband speed and cost.

(The US - with broadband penetration at just under 53% - is in 24th place.)

The fact that anyone would consider 3Mps down broadband in 2007 should be an indicator of just how bad the situations is.

Oh wait! I just checked and the official definition is "data transmission speeds exceeding 200 kilobits per second (Kbps), or 200,000 bits per second, in at least one direction: downstream (from the Internet to your computer) or upstream (from your computer to the Internet)."

I guess the rest of the post really kind of writes itself. Joost can't work on a 10 year old, crippled network. Another big win for the USA!

From NewTeeVee:

"The fundamental problem that Joost faces is the fact that the broadband available to North American households simply isn’t fast enough for them to provide image quality comparable to digital cable or satellite, much less high-definition video.

My concern is that with DSL provider AT&T moving into IPTV, and cable Internet providers already delivering video, what little competition there is in America for consumer broadband providers, any incentive to increase speeds (especially the upstream bandwidth) could hit a wall of corporate self-interest. After all, why should companies like Comcast offer the kind of high speed broadband enjoyed in Europe and Asia when it would simply enable companies like Joost to compete with the company’s own digital video offerings?

Even if there is a significant increase in network speed, without any guarantees of network neutrality, Internet providers could simply charge Joost and other independent IPTV upstarts for the bandwidth rights to stream video of comparable quality to their own digital video offerings.

And guess who that cost would get passed on to? That would be you. So while Joost has a lot of potential on other continents, the cards are stacked against the company here in the USA."

Joost: 1 million beta users

Joost has 1 million beta users and will launch by the end of the year.

From the APC:

"Joost, the peer-to-peer TV sharing application from the inventors of Skype and Kazaa, has signed up more than a million beta testers and is on track for an end-of-year launch, its co-creator has revealed.

"The plan is that the service will be fully launched later this year," he added, though he declined to specify an exact date. As Joost's user base grows, ensuring speedy delivery of content will become a greater challenge."

Embedded Joost

After bringing on the new CEO from Cisco, Joost seeks embeddedment.

From The Register:

"This week, Joost started publicly talking about getting equipment manufacturers to embed its video-playing software in TV sets and other consumer hardware.

That would help it solve two problems. First, the glitches it's currently running into when it tries to deliver high-quality video over internet connections that are too slow for the function. The second, which cannot be fixed by tweaking software, is that people want to watch the majority of their entertainment videos on that newly purchased 42-inch flat-panel screen that's hanging on the wall in the living room.

New CEO Mike Volpi said Joost is a piece of software that can reside on a variety of platforms, including a television with an internet connection, a set-top box, a mobile phone, or in some alternative device that might come out in the future."

Joost, Volpi and...AppleTV?

Mike Volpi is the new CEO of Joost. He talks with GigOM about the new gig.

From GigaOM:

"OM: Why do you think the time is right for Joost?

MV: I think there are three things that have come together. Content owners have realized what happened to the music industry and have embraced the Internet. I think that combined with broadband, and the P2P technology platform.

OM: Is there a chance we will see Joost on AppleTV?

MV: We would love to put Joost on the Apple TV platform. We know we can make it run on any operating system."

From NewTeeVee:

"This vortex of funding, anticipation, and beta launches in the Internet TV space is getting intense. The latest signal is competitors telling us tales about advertisers grumbling about the performance of their ads on Joost. But it’s super early — the software has only recently been available in stable form — so we’re waiting for time to tell."

Joost raises $45M

Joost raised $45m from a select group of investors.

From MSNBC:

"We've got the product out there. Now it's all about accelerating and expanding the business," he said. "This funding round is all about accelerating everything."

Until now, Joost has been funded personally by its founders, who invested part of their proceeds from selling Skype to Ebay for $2.6bn in 2005. By the time of last week's launch, it had signed up "a few hundred thousand" people to test a beta version of the service, which was originally codenamed the Venice Project.

"The premise and the promise of Joost are very intriguing," said Roelof Botha, general partner at Sequoia. "It is rare to come across a business that has the potential to transform an industry in quite the way Joost has."

From GigaOM:

"While Index’s Danny Rimer and Joost co-founders go back a long way, aka Skype, CBS and Viacom are just ensuring that they get their pay-off both ways - from eventual sale of Joost and advertising on their content - for helping Joost get some traction. Ka-shing, is also an old friend - his Tom Online got Skype into China, helped grow the traffic and subscribers by millions, that led to eventual payoff pitch - sale to eBay.

What is even more interesting, Sequoia - the house that funded legendary companies like Cisco Systems, Yahoo and Google - being part of the syndicate that was “selected.” Did anyone else feel the earth move?"

From Index:

Danny Rimer, general partner of Index Ventures said, "We are excited to be working with Niklas and Janus once again as we see the same ground-breaking potential in Joost that we saw in Skype. By leveraging proven P2P architecture and assembling a world class management team, they have made a powerful idea simple and brought new services to market in record time. Our investment in Joost signals Index Ventures continued commitment to investing in impactful technologies."

Joost adds Turner

Building up to the full commercial launch, Joost adds Turner to its content mix.

From the AP business wire:

"Joost, a company attempting to broadcast television via the Internet, said Tuesday it had signed several new content distribution agreements, including one with Turner Broadcasting System Inc. to show CNN news and interview programs.

In Tuesday's deal, Joost said it will air episodes of "Aqua Teen Hunger Force" and "Robot Chicken" from Turner's Adult Swim network, while it would air "Larry King Live," among other news and interview programs from Turner's CNN, which is owned by Time Warner Inc.

Joost also announced several other content deals Tuesday: Sony will run episodes of several old TV series including "Charlie's Angels" and "Starsky & Hutch" on Joost; Sports Illustrated will run photo shoots and programs about its swimsuit issue; the National Hockey League will broadcast vintage games and game highlights; and Hasbro will run old episodes of "Transformers" and "G.I. Joe."

From the press release (via Lost Remote):

"Dennis Quinn, executive vice president of business development for Turner Broadcasting System, Inc. said, “With Joost, we have the unique opportunity to reach and engage new and existing fans of Turner programming through an innovative platform. Online distribution is extremely important to Turner, and with Joost we are confident that our programming is secure and distributed in the high-quality format that is true to our brands.”

Janus Friis, co-founder of Joost, said, “The ability to make Joost a viable business, versus just a cool technology or viewer experience lies in our ability to bring together advertisers, content owners and viewers. Our business model was developed with the interests of our viewers and partners at the core. It’s exciting for us to enter this phase and truly begin executing on our vision.”

Joost goes live (with Ad model updates)

Joost is live: as seen on Digg. Beta testers have unlimited peer invites.

More on the ad model from Adverblog:

"One of the Leiden crew's top priorities is a backend ad engine that can pinpoint viewers by location, time of day, viewing habits, and opt-in profile information to serve up a perfect ad. Developed by open source geeks in privacy-centric Europe, the central database doesn't store any identifying data. Personal information is stored only on the user's own PC. Clark, the ad sales chief, is happy to blue-sky the possibilities: "Buy all the Desperate Housewives viewers in a zip code. Or the first thing a given viewer watches on a given day."

In theory, that kind of control will make the network much more valuable to advertisers. "We offer targeting they've never dreamed about in the TV world," says Werdelin. "And a deeper relationship with customers. Not just deeper than TV, but deeper than most of what you get on the Net. I don't think anyone really knows what those things are worth."

Joost's advertising wins

Its just a three month trial but still pretty cool.

From Clickz:

"Online video platform Joost has signed three-month contracts with a group of 31 big brand advertisers, including Procter & Gamble, Coca-Cola, Nike, General Motors and Visa. It will offer these marketers traditional units such as :30 mid-roll spots as well as unique formats, including a small digital overlay ad.

Ad units include still images, video spots, overlays and widgets, in addition to branded entertainment and channel sponsorships. Joost has also created an ad unit called Ad Bug, consisting of an advertiser's animated logo in a corner of the screen, similar to station ID components in cable and broadcast TV. Ad bugs will appear at various times during a given show and disappear again after a matter of seconds.

Joost is working with research firm Frank N. Magid Associates (no way!) to test new ad formats, measure user consumption habits, and assess ad effectiveness. It also has a year-long strategic partnership with Interpublic Group's Emerging Media Lab to develop and sell advertising on its platform."

CBS and Joost

Another big win for Joost.

From the press release:

"Through Joost, the world's first broadcast-quality Internet television service, viewers can watch CBS programs through a customizable platform with advanced television viewing features such as links that lead to more information or related websites based on the content; and a variety of plug-in applications, such as instant messaging, message boards and news tickers.

"Joost is a long-term solution for content owners seeking to expand their audiences in the online world. A state-of-the-art global distribution platform, Joost is the perfect place for CBS to offer its channels, brands and premium programming to online audiences," said Yvette Alberdingkthijm, executive vice president of content strategy and acquisition for Joost. "By working with Joost, CBS can get closer to its audiences while retaining maximum programming flexibility and control over its channels."

Media Post reviews Joost

Joost is going to be so huge. Highlights from the article:

“We like to think of ourselves as an aggregator,” adds Yvette Alberdingk Thijm, executive vice president of content strategy and acquisition for Joost. “The business model is very simple. It provides [content owners] with another form of distribution.”

Joost’s Alberdingk Thijm offers only that future deals might be different for different companies. “The content owners have the final say,” she notes, adding that numerous combinations of advertising-based deals could be struck. “The content owners can sell the time and package it with their other media — or we can sell it. We have a global sales team in place.”

Joost “will be direct competition with cable and satellite,” says one network executive. “We have tremendous existing businesses with those companies — representing billions of dollars.”

The coming golden age of TV

How's that for a contrarian headline?

From Micro Persuasion:

"The TV is undergoing a renaissance. In five year's time, 50% of what the most coveted audiences watch on their sets will come off the Internet. However, it goes beyond the changes in video content. Television will run widgets and other connected software applications. These will be different from, yet complementary to what runs on a PC desktop or webtop. That's just the beginning.

Who will create the de-facto OS for your TV? Right now that's anyone's guess. The leaders are all the stalwarts from the PC era - e.g. Microsoft and Apple. And we haven't heard from the leaders who program the web yet. Companies like Google, for example. In addition, there are the companies who make the boxes (the Tivos of the world) and the cable/telcos who re-sell their boxes. These will run software too.

What is certain, though, is that once again TV is a growth business thanks to the Internet and software. And therefore the Golden Age of Television may be a head of us, not in our rear-view mirror."

Don't forget about Joost!

Why Apple TV is a game changer

Sure there are a ton of posts about the Apple TV but here is a good one on why its going to make an impact.

From NewTeeVee:

"Technically, the Apple TV may be simple, but its effect on the TV industry will be anything but. Why? Because TV business models that have thrived for the past thirty to fifty years that relied on:

• Advertising-supported TV.
• Prime-time programming.
• Bundled content.

Apple TV is about to attack the fundamental assumptions underpinning the TV business just as the iPod cut the legs out from under CDs and radio stations. How? Because with Apple TV combining the flexibility of the Internet with a living-room, big-screen experience, consumers now will:

• Vote for programming with consumer dollars.
• Watch what they want, when and where they want it.
• Enjoy TV programming a la carte."

The interesting thing about this to me is that those fundamental changes are certainly valid for the Apple TV product but also describe the ground shifting change that other companies are bringing to the world of TV. Think Joost, Clown Co and Youtube.

Joost in talks with Disney?

After the Viacom deal, this would be a huge win for Joost.

From NewTeeVee:

"A Disney exec speaking at a conference today spilled the beans that his company is impressed with Joost. Kevin Mayer, Disney’s EVP of corporate strategy, business development, and technology group, said in general he was skeptical about bringing the TV experience to the PC, but specifically he was interested in the promise of Joost, reports Digital Media Wire."

From Digital Media Wire:

"Though Mayer did acknowledge the importance of internet video outlets, he said, “Will forcing the TV experience to the PC resonate with our customers? That remains to be seen.” He did say, however, that the company is analyzing a potential relationship with internet TV provider Joost, which recently came to terms with Viacom on a content deal as well. He cited Joost’s “high quality format” and “excellent management team” as two reasons Disney might be interested in a deal."

What "Joost" means

The Reel Pop guy makes me laugh. Check out this funny headline:

"Naw dawg, you pronounce it "Yohst." I think it's Dutch for "suck it, YouTube"

WVFF's take on the Joost Viacom Deal

From WVFF:

"This is “game changing” news for many reasons:

• Joost’s model is about a convergence of online videos and television. We’re on the verge, and this is a big step in that direction.
• Viacom will likely keep the vast majority of the ad revenue, but this gives Joost credibility and a jump-start for building an audience.
• It’s arguably an overstatement, but Viacom is for Joost is somewhat like Howard Stern was for Sirius.
• Now YouTube will need to compete to maintain relationships with “big media.”
• It’s a bold move for Viacom because they’re basically saying they don’t need an online audience. They can build one. How many people use Joost vs. YouTube?"

Viacom and Joost

The WSJ is reporting that Viacom and Joost have signed a deal giving Joost access to hundreds of hours of programing.

From the WSJ: (subscription required)

"Just two weeks after ordering its content to be pulled from YouTube, Viacom Inc. announced a broad licensing deal with Joost, a new Internet service that specializes in commercial video content.

The deal, which follows the recent collapse of similar talks between Viacom and YouTube parent Google Inc., involves licensing hundreds of hours of programming from Viacom cable networks such as MTV, Comedy Central and Spike as well as movies made by the company's Paramount studios."

From Marketwatch:

"We're interested in distribution of our content on as many platforms as possible, provided we can operate in a secure environment," The Journal said it was told by Viacom Chief Executive Philippe Dauman said in an interview. "This assures any potential partners that we're open for business and that we're able to enter into transactions with companies that respect our content and the considerations of our business."

From PaidContent:

"It is still early days for Joost, but it is trying hard to become a place for YouTube refugees...at least the big media companies shying away from YouTube. It was started last year by Niklas Zennstrom and Janus Friis, the two men behind Kazaa and Skype. It has deals with Warner Music and Endemol, and other smaller companies, but the Viacom agreement is its most far-reaching deal thus far."

MIT Technology Review: Joost another Youtube

Technology Review takes a look at Joost.

From the post:

"We're taking the next logical step in television," says Joost chief technology officer Dirk-Willem van Gulik. Joost, he says, combines the best parts of the television experience with the best parts of the Internet.

It's more than a fancy way to transfer files. The zippy, full-screen broadcasts and the browser allow users to change channels, search content, and receive recommendation lists. Eventually, the Joost browser will even allow software developers to create their own plug-ins. The service is free, and it's supported by one minute of targeted advertisements per hour.

Joost will compete with video services ranging from YouTube to Netflix's newly announced download service, and even with traditional cable companies like Time-Warner.

Joost also faces a number of practical and technical challenges. "The popularization of P2P content sharing via Gnutella/Kazaa has already been extremely expensive for ISPs, and the advent of Joost can take bandwidth utilization … to another level entirely," says Zhao.

The service must also prove to content providers that Joost really is a "piracy-proof Internet platform," a claim made in one of the company's press releases.

For now, the future of Joost hinges on what kind of content it is able to license and support with its advertising-based model. "

Joost: Let the Reviews Begin

With a fresh new set of beta invitations out, reviews of Joost begin.

Wired:

"It's really pretty simple," Friis says, shifting into mantra mode. "We've taken the best things about television and added the best things from the Internet."

The vision: universal TV, running on a hybrid P2P platform -- millions of exquisitely networked PCs fortified with traditional video servers. Free to viewers who download the player app. Friendly to content owners, thanks to industrial-strength encryption. Delightful to advertisers, adding pinpoint targeting to their all-time favorite medium. Everyone's a winner!

Van Gulik estimates that 80 percent of the project's software comes from existing libraries of open source code. Engineers culled the pieces they needed and stitched them together into gnarly databases and backend servers, plus the crucial 10-Mbyte app that runs on users' PCs. "Without Mozilla, Ubuntu, and a lot of other public code," van Gulik says, "we'd still be scratching our heads."

"We are going to be the single most legal platform on the Net," says David Clark, the New York-based advertising director, formerly with MTV Networks. "The entire ecosystem falls apart when people don't get paid."

frantic industries:

"The installation is simple and smooth. Joost was behaving very nicely and it never crashed or stopped responding. I’ve noticed that when playing a video, Joost, on average, eats up around 35% of CPU time which is not that bad, but it’s also not negligible, as my Opteron 144 overclocked to 2.8 GHz is a relatively speedy beast.

The icons are big and easy to hit, and while the scrolling may be a little slow at some points, it’s perfect for using on the TV screen.

The actual quality of the videos varied quite a bit, but it was definitely much better than anything on YouTube or Google Video.

One of the most important features of Joost is the support for plugins.

The application works great, looks ok, and if you got a decent internet connection, you’ll have no problems using it. Its success will depend on the amount and quality of content, and of course, ultimately, the success of Joost’s ad-based business model."

Joost: The Venice Project

"Yesterday we were The Venice Project... today we are Joost!

While we're still in beta, we hope that Joost will become synonymous with the best of TV and the best of the Web."

Fredrik de Wahl

TechCrunch:

"A tip from reader Joost Schreve led us to the domain name Joost.com: if you click the “cancel” button multiple times an unformatted web page pops up with information about the Venice Project. We have subsequently confirmed that this is the actual launch name of the company."

NewTeeVee:

"Finally, the online television startup from the founders of Skype has a production name: Joost. Of course, the premature hype streak lives on, as that URL is still password protected.

We have some new screenshots below the jump."

Janus Friis:

"Coming up with a new name for a new company can be a quite strange experience - it takes a totally disproportionate amount of time, it is hardly scientific and it inspires some very heated, emotional debates. But there you have it. And while it does not mean anything now we think it will come to mean great quality Internet TV the way it should be."

The Venice Project: Industry Observations

The building buzz around The Venice Project continues.

The Wall Street Journal: (subscription required)

"Janus Friis and Niklas Zennstrom roiled the music industry with their first venture and the telecom world with their next. Now, the Scandinavian entrepreneurs behind the KaZaA file-sharing software and Skype Internet calling are backing an online video start-up that could shake up the television and cable industries as well."

NewTeeVee:

"And while the glam duo might hog the headlines, the task of making the Venice Project a reality falls on the shoulders of Fredrik de Wahl, a lanky Swede with a quiet demeanor who has been a cohort of Messrs. Zennstrom and Friis for more than half a decade.

He explains that just like a “Skylib” enables voice and chat services on the Joltid’s p2p layer, The Venice Project runs on a media streaming library the company has nick named Anthill. The company uses a H.264 codec licensed from CoreCodec, a US-based company, much in the manner Global IP Sound provided the voice codecs for Skype. “CoreCodec is the best of breed H.264 video codec and is efficient and has the high quality we need,” de Wahl says.

Running on top of these core technologies is a highly modified version of Mozilla browser, which makes it easy for the company to port its client to any operating system – Mac, Linux or even mobile operating systems. The user interface is built using Adobe’s SVG technology. In other words, it’s a Web-enabled hybrid application, much like the brilliant Songbird meta-music client.

“I think very soon people can start writing plug-ins for the Venice Project,” he says."

PaidContent:

"So what is The Venice Project? A code name for a service that would allow viewers to watch high-quality streaming professional video (movies, TV, etc.) using p2p instead of a central server and meshing TV with web capabilities like tagging and search. The plan calls for working with content providers to distribute legit content—no, this isn’t the first p2p effort to do that—and, as the FAQ says, to make it “as TV-like as we can, with programmes, channels and adverts.” They also want to mesh TV and web in terms of revenue—advertising with rev sharing."

InfoWorld:

"The Venice Project is almost certain to worry numerous network operators in the U.S. already concerned about their broadband pipes becoming plugged with a range of new video download services. A proliferation of these services could add fuel to the nation's already overheated debate on network neutrality."