Joost gives up on TV streaming
If digital delivery is really overtaking physical formats, someone forgot to tell Joost, who gave up on delivering repurposed content through their online streaming service earlier this week. Instead, Joost will be focusing on delivering third-party video content.
Joost is restructuring their company, including letting go 100 employees. Ad supported content online hasn’t been realizing real profits compared with traditional media delivery through broadcast, cable, satellite and on physical discs. It is especially difficult for Joost who isn’t owned or affiliated with the major broadcast networks, who own both Hulu and TV.com.
The CEO of Joost, Mike Volpi, is stepping down (while remaining chairman of the board). He commented, “In these tough economic times, it’s been increasingly challenging to operate as an independent, ad-supported online video platform.”
Advertising budgets have been cut across the country in this recession, and this is also not helping matters.
I think the future of on demand content will be provided through the established cable and satellite companies. Programs will be available when you want them through the set-top box connected to your TV. I just hope the revenue will remain high so the quality of the shows won’t suffer. But I do think physical media will remain popular for full-length feature films.