Janus Friis and Niklas Zennstrom, the duo that brought the world Skype and Kazaa, have chosen the name "Joost" for their new online-video start-up. The name has no meaning in Danish, it was simply chosen because it had a nice ring to it. Originally referred to as "The Venice Project", Joost will offer studios, cable stations and anyone else who wants to distribute high-quality video over the Internet, a fast, efficient and cheap distribution method.
Just like with Skype and Kazaa, the concept will come to life via peer-to-peer technology. Nevertheless, Joost will have to compete with many video-distribution platforms, including the fashionable YouTube and iTunes. San Francisco-based BitTorrent is in direct competition with Joost since it is a peer-to-peer technology and is attempting to license technology to Internet video companies. Yet even more competition comes from the growing number of websites offering top cable and movie channels without permission. The main problem, however, is not competition: Joost has yet to sign any deals with top film or TV producers. Will Joost be unique enough to be as successful as Skype and Kazaa?
Joost replicates the TV-viewing experience better than many of the other companies. Joost"s nifty technology may be enough to sway the entertainment industry. A menu allows users to switch channels with the click of a link. Just like with Tivo, users will also be able to access offered content regardless of the time of day. Moving forward and backward within a show is also possible. How will the Joost support itself? Advertising. The Luxembourg-based company will have Internet ads that behave just TV commercials. "These are the kind of ads that the TV industry and viewers understand," Joost CEO Fredrik de Wahl said.