AP sources: Joost seeks cable TV operator as buyer
PHILADELPHIA — Online video site Joost is shopping itself around to different cable TV operators, but at least one has declined to buy it, according to people with knowledge of the talks.
Time Warner Cable Inc., the nation’s No. 2 cable operator that recently separated from parent Time Warner Inc., is in talks with Joost for a possible acquisition, according to two people who spoke on condition of anonymity because they were not authorized to comment on confidential negotiations.
But the cable operator will only be interested if it can buy Joost at a low price, which might not be difficult in this market.
Philadelphia-based Comcast Corp. already turned down Joost, which approached both cable operators, one of the persons close to the talks said.
Comcast, the nation’s largest cable TV operator, owns a competing online video site called Fancast, which also streams TV shows, movies, clips and other video.
Joost began with much fanfare in 2007, co-founded by Janus Friis and Niklas Zennstrom, the same people behind Internet phone service Skype and Kazaa, the file-sharing site. It has minority investments from Viacom Inc. and CBS Corp.
It started as a peer-to-peer site but wasn’t successful, then switched to online video. But Joost suffered from poor traffic and had trouble making money.
In March, Joost videos had 523,000 unique viewers compared to 41.6 million for top online video site Hulu.com, according to comScore Inc. Fancast had 833,000 while TV.com, which is owned by CBS, had 3.5 million.
Joost approached Time Warner Cable because it thought the cable operator was a bit behind in online video, one of the persons with knowledge of the talks said.
Building an online site from scratch isn’t easy and it takes time to build up viewership. Time Warner Cable also could buy Joost for its technical expertise in online video, especially when it comes to authenticating subscribers for access to the site.
Cable operators and networks are working together on online video endeavors. They want to give cable subscribers access to cable TV shows online. But customers must be proven to be paying subscribers through an authentication process that’s yet to be finalized.
New York-based Time Warner Cable is testing this subscriber-only concept with HBO, owned by its former parent Time Warner Inc., in Milwaukee. The trial began in early 2008 and subscribers can watch HBO shows online through a specially created Web site.
Joost can give Time Warner Cable a leg up in online video, although the cable operator could also park videos at its Web site for Road Runner, the company’s broadband service.
Joost’s problems aren’t a result of advertisers cutting back in this economy because they’re still buying online video ads even if they reduce spending elsewhere, said David Hallerman, senior analyst at research firm eMarketer.
He expects online video ads — ads shown in video form wherever it appears on the Internet — to increase by 43.5 percent to $1.05 billion in 2009. Last year, it grew by 126 percent.
Joost started on the wrong foot. For instance, it required consumers to download a video player whereas Hulu started with a simple and clean interface, Hallerman said.
It belatedly scrapped the player last October to offer a Flash video site, long used by Hulu, YouTube and other sites. Joost also doesn’t offer some of the most popular TV shows, such as “Heroes” or “24.”
A simple interface “is not to be underestimated,” Hallerman said. “They lost momentum.”
(This version corrects that comScore numbers are for viewers of video on the sites, not overall site visitors.)
Related News
AT&T launches a Web site offering free video like HuluSeptember 10th, 2009 AT&T launches an online video site like HuluDALLAS — AT&T Inc. on Thursday unveiled a Web site that offers free access to TV shows and movies.
Appeals court rejects FCC rule that capped cable TV market share, handing Comcast victoryAugust 28th, 2009 Court rejects cap on cable market share _ againPHILADELPHIA — An appeals court overturned a rule that said a cable TV company could not serve more than 30 percent of the nation's subscribers. The verdict Friday was a victory for the largest cable company, Comcast Corp., which has 25 percent share and sued to block the rule.
In race with cable, AT&T to offer discounts for wireless, Internet and TV bundlesAugust 24th, 2009 In race with cable, AT&T pushes discounted bundleNEW YORK — AT&T Inc. has started offering its first bundle discount for customers who combine its U-Verse TV service with wireless and broadband.
Man charged in NJ car death of ex-'American Idol' singer known for viral video rejection rantJuly 28th, 2009 NJ man charged in 'American Idol' contestant deathTOMS RIVER, N.J. — A man has been charged with drunken driving following a New Jersey shore car accident that killed an "American Idol" contestant whose angry rejection rant became an Internet sensation.
Comcast's online video trial for cable subscribers grows to 23 networksJuly 14th, 2009 Comcast online video trial grows to 23 networksPHILADELPHIA — CBS Corp. and 17 cable networks said Tuesday they are joining an online video trial by Comcast Corp., a move that tacitly acknowledges advertising isn't enough to support shows streamed over the Internet.
Comcast to stream HBO, Cinemax online for subscribers in limited trialJuly 13th, 2009 Comcast to stream HBO, Cinemax online in trialPHILADELPHIA — And you thought the HBO hit TV series "Entourage" would never be streamed over the Internet — at least legally. Comcast Corp.
Supreme Court won't block Cablevision's remote-storage digital video recording systemsJune 29th, 2009 High court won't block remote storage DVR systemsWASHINGTON — Hollywood studios and television networks lost their bid Monday for the Supreme Court to block the use of a new digital video recorder system that could make it cheaper and easier for viewers to record shows and watch them when they want, without commercials. The justices decline to hear arguments on whether Cablevision Systems Corp.'s remote-storage DVR violates copyright laws.
Supreme Court won't block Cablevision's remote-storage digital video recording systemJune 29th, 2009 High court won't block remote storage DVR systemPHILADELPHIA — Cable TV operators won a key legal battle against Hollywood studios and television networks on Monday as the Supreme Court declined to block a new digital video recording system that could make it even easier for viewers to bypass commercials. The justices declined to hear arguments on whether Cablevision Systems Corp.'s remote-storage DVR system would violate copyright laws.
Al Jazeera to enter US marketJune 25th, 2009 DUBAI - The English version of the Qatar-based television news channel Al Jazeera is set to make its first major foray into the US market July 1 through a cable TV company in the Washington DC area. "I can tell you that on July 1 we are going to launch an agreement with a Washington DC-based company that has around 2.3 million subscribers," said Al Jazeera's director general Wadah Khanfar.
HBO coming to the Internet: Time Warner, Comcast to start online video trialsJune 24th, 2009 Time Warner, Comcast to start online video trialsPHILADELPHIA — Time Warner and Comcast are joining forces to bring cable TV shows to the Internet, but only for paying subscribers. Starting next month, the companies will launch online video trials nationwide giving 5,000 Comcast Corp.
Time Warner Cable prices $1.5 billion debt offeringJune 24th, 2009 Time Warner Cable prices debt offeringNEW YORK — Time Warner Cable Inc. said Wednesday it priced a $1.5 billion underwritten public offering of 6.75 percent debentures due 2039.
Cable venture suspends first advertising product even before it gets off the groundJune 19th, 2009 Cable venture suspends first advertising productPHILADELPHIA — A joint venture formed by the nation's six largest cable operators is suspending trials of its first advertising product before it even gets off the ground. Canoe Ventures said Friday that it will discontinue plans for now to launch "community addressable messaging," which sends ads that vary by household depending on factors such as income and age.
Correction: Cable-Joost storyApril 30th, 2009 Correction: Cable-Joost storyPHILADELPHIA — In an April 27 story about online video site Joost, The Associated Press erroneously used the term "unique visitors" for Joost and its rivals. The numbers cited were for "unique viewers," meaning visitors who have actively watched video on those sites.
Time Warner Cable 1st-qtr profit falls on restructuring, spin-off charges despite sales boostApril 29th, 2009 Time Warner Cable 1Q earnings fall on chargesNEW YORK — Time Warner Cable Inc. said Wednesday its first-quarter earnings fell 32 percent on restructuring and other costs related to its spin-off from former parent Time Warner, despite a boost in sales.
Congress to hold hearing on cable operators' plans for targeted advertisingApril 22nd, 2009 Congress to hold hearing on cable advertisingPHILADELPHIA — Cable operators will sit in the hot seat Thursday as Congress reviews their plans to roll out targeted advertising amid fears that consumer privacy could be infringed if the companies were to track and record viewing habits. The House subcommittee on Communications, Technology and the Internet will hold a hearing that will look at new uses for digital set-top boxes, the devices that control channels and perform other tasks on the TV screen.
Loading ...