Joost Shuts Down UK Operation
The UK operation of the online video service Joost, founded by the creators of Skype, has gone into administration, despite the company reportedly attracting more than $45 million in funding
Uncertainty surrounds the future of online video service provider Joost, which was founded back in 2006 by the creators of Skype, after its UK operation was placed into administration.
Joost was founded by Niklas Zennstrom and Janus Friis, and in 2007 the company raised an impressive $45 million (£28.5 million) in funding from investors such as Sequoia Capital, CBS Corporation Viacom and Index Ventures.
Joost is actually based in the Netherlands, and the decision to close the UK operation is part of a number of cost cutting measures the company has undertaken recently, including job losses and a reworking of its business model.
Joost also underwent a revamp back in July but “failed to sustain a significant share of the internet video industry and was unable to address this effectively through a re-positioning of its services”, the UK liquidators are reported as saying.
It is thought that the UK was placed into administration following a month on the market with no takers.
The company seems to have struggled to land agreements with major content providers, especially as broadcasters seem to favour launching their own Video on Demand channels, rather than dealing with likes of Joost.
The future of the Dutch and New York operations of the company are unclear at this time. Joost founders Zennstrom and Friis are apparently setting up a music subscription service dubbed Rdio, in an attempt to take on the popular music service Spotify.
During the summer CEO Mike Volpi stepped down, and in September he was removed from his post as chairman. Volpi is now being sued amidst allegations of leaked trade secrets.
