Joost Reorgs to Focus on Video Platform

Written by Ryan Lawler

Tuesday, June 30. 2009 at 12:00 PM EDT 1 comment

Digg   Del.icio.us   Reddit   Email This

no ratings

• Login to Rate

Online video firm Joost is taking a new strategic direction, and is restructuring the company to focus on selling a white-label video platform.

Joost has whittled down its personnel to a "core team" of employees in New York and London that will work on selling its technology as a white-label video platform. Joost spokesperson Kerry Vance wouldn't comment on how many employees were let go as part of the re-org.

There has also been a bit of shuffling in the senior exec ranks, as Mike Volpi, who famously took the CEO job at Joost after an acclaimed career in the telecom sector, has stepped down as CEO but promises to remain involved as chairman of the board.

Matt Zelesko, the company's senior vice president of engineering, will be taking over as CEO; and Stacey Seltzer, who currently serves as senior vice persident of international business development, will run all business operations.

While Vance says the company plans to continue operating Joost.com, the real focus at Joost will be on trying to position itself as a white-label video platform, a move that was alluded to by Joost CTO Jason Gaedtke in an interview with Contentinople earlier this year.

The shift in strategy comes after a difficult run for Joost, which launched amidst much hoopla two and a half years ago and raised a bunch of money but never lived up to its potential as an online video destination.

In recent months, rumors have swirled that Joost could be an acquisition target for a service provider looking to offer online video services, with Time Warner Cable as a possible buyer.

Despite switching from a peer-to-peer desktop application to an in-browser video destination site run on Adobe's Flash technology, Joost wasn't able to pick up the user interest it needed to make a successful business as an online video aggregator.

While the company has the technology required for white-labeling its online video platform, it will face challenges in entering another highly competitive market.

By focusing on selling its technology to third parties, Joost will be competing with the likes of Brightcove Inc. , thePlatform Inc. , and other deeply entrenched competitors that offer video management services.