Joost retreats from consumer market

New York – Joost, the online video startup, has decided to abandon the consumer market. Instead, it will focus on providing ‘white label’ online video platforms, allowing media companies such as cable and satellite providers, broadcasters and video aggregators, to publish video under their own brand names.

Joost, founded in 2006, never really made it in the consumer market, losing out to YouTube and Hulu. With its new business model, it will be competing with the likes of Brightcove and Ooyala.

Joost plans to make its white label video platform commercially available to media companies around the world, allowing them to build a ‘branded experience’ for their content on their own site, as well as other sites and platforms in their distribution networks.

The move will trigger a major reorganisation, with core teams in New York and London working on providing these solutions, as well as operating and supporting and its associated video applications. Joost will wind down operations in its Leiden development center, but won’t say how many of the company’s 100-odd staff will be laid off.

Matt Zelesko, currently SVP of Engineering at Joost, will take over as CEO while continuing to lead the engineering organization. Stacey Seltzer, currently SVP of international business development and content acquisition at Joost, will run the business operations. Mike Volpi has stepped down as CEO of Joost but will remain actively involved as Chairman of the Board.