Joost Tries to Remain Relevant; Will Nix Desktop Client

Joost – one of last year’s hottest startups and so far one of this year’s biggest flops – is pulling a 180 in strategy. According to Om Malik, the video service will kill off its desktop client and replace it with a Web version that will utilize a “small plugin that would embed itself in the browser and allow you to grab files using the P2P technologies”

Although the required download was long one of the biggest criticisms against Joost, the company now faces another big challenge: content. While Joost has scored a number of deals with the likes of CBS and Major League Baseball, one look at the Joost homepage tells you the current state of the company’s catalog.

With all due respect to He Man & Shera, there is no way Joost on the desktop or the webtop can compete with the likes of Hulu, which has thousands of recent episodes of hit shows like The Office, The Daily Show, and House, just to name a few. Considering Hulu is backed by News Corp and NBC Universal, it’s doubtful Joost will be able to do much to improve its catalog either, since Hulu’s huge competitive advantage is its access to content. Making things even worse, Joost’s own investor and partner CBS has many shows available on its website that are nowhere to be found on Joost.

While shifting to a Web-based product is a much needed move, it seems like too little, too late, unless the company also makes a radical shift in content strategy. At the moment, Joost – which has raised $45 million - has essentially become like a lower tier cable channel, which simply doesn’t work online because of the infinite number of alternatives.

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