Joost.com is changing its business model, reports the Mashable Blog in The Joost Story: Sometimes, Good Projects Fail. Joost offers free movies and TV shows online. The platform had initially required users to download files, but in 2008 Joost switched to browser viewing with Flash.
Licensing Business Model
While it will continue to give users free TV programs and movies, the company now says it will focus on licensing its video platform to other broadcasters and media companies.
“Joost is yet another example of an ad-supported Web company that has found it too difficult to make money on ads alone as marketing budgets shrank,” says Claire Cain Miller in a Bits column of the New York Times.
What do you think is the future of the ad model? Please leave me a comment.
More on the Online Business Model
See also this page of related posts on social network business models.