Joost the much-hyped OTT video provider is dropping its consumer proposition and reinventing as a "cost-effective" white-label video provider. Along the way it is cutting many staff possibly preparing for a sale as a technology company rather than an entertainment platform.
Mike Volpi its high profile CEO is stepping down although will remain as chairman. Matt Zelesko, the SVP of engineering who joined from Comcast in January, replaces Volpi while keeping his engineering portfolio. Stacy Seltzer, who has been SVP of international business development and content acquisition, will run business operations.
Volpi admitted what many others have drawn their own conclusions on: "it's been increasingly challenging to operate as an independent, ad-supported online video platform. In order to position ourselves well for the future, we began investigating additional lines of revenue for Joost." The solution they've chosen is focusing primarily on building a white-label option for others who want to run portals.
The company was founded in 2007 by Janus Friis and Niklas Zennstroem, the founders of Skype and Kazaa. Joost raised upwards of $50 million in funding.