Word: joost
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...comes down to what you can watch. Content is still king. While Joost now offers fewer than 50 channels, it will soon have hundreds, and eventually thousands. To keep things simple, you can stick to a few channels. Or you can open the floodgates. "Today TV is 500 channels but we're not far--maybe three years--from a 5,000-channel world," says Hilmi Ozguc, CEO of Maven, which powers Internet TV for media companies like CBS and Univision. "And in 10 years, we could easily be at 50,000 channels from all over the world. You'll have...
...Joost is lean-back from a content point of view, but its attractiveness to advertisers is in getting you involved. Ad execs love Internet TV because its audience is measurable, targetable and interactive. "If you spend 10 minutes learning about a new car you're interested in," Ozguc says, "that's worth gold to advertisers." By 2010, Parks Associates estimates, the online-video market will grow fivefold, to more than $7 billion. So far Wrigley, T-Mobile and Maybelline have signed on, and others may customize ads not just by location but also by viewing style. Watching Lassie, Benji...
...this time, Friis, a Dane, and Zennstrom, a Swede, won't have every media lawyer in the U.S. waiting to sue them, as was the case with Kazaa. TV networks are pleased with Joost's advanced encryption, which they say makes it virtually piracy-proof. Joost's founders learned the importance of that the hard way: Kazaa was forced last summer to pay more than $100 million to settle copyright-infringement claims...
Encryption wasn't the biggest problem in creating Joost. The primary puzzle was piecing together a network powerful enough to stream near DVD-quality, full-screen video to millions of computers simultaneously. The trick, it turned out, was to employ distributed computer power, using viewers' own PCs to speed video along. Having developed similar person-to-person networks for Kazaa and Skype--to transmit music files and phone calls through the Net--Joost's engineers finally nailed the solution last summer. Shouts of joy went up when they streamed their first video. It depicted, appropriately enough, sharks circling prey...
...fortunes Zennstrom and Friis had already accumulated, they could afford to gamble on the venture, which they have largely funded on their own. "They're cutting edge, passionate and aggressive," says Lucas Mann, co-founder of MusicNation, an artist-development company with a music-video-contest channel on Joost. "They're cyberpunks...