Joost hit by lower online ad prices

Recently Joost decided to abandon its plans to become an ad-supported Web TV Channel, now they hope to become a seller of video-serving technology. This is said to be due to the decline of recent advertising prices and an extremely competitive market.

The chief executive of Joost Mike Volpi, blamed the economic recession for the sites failure and has stated that layoffs were extremely likely.

Joost’s decision to abandon plans to become an ad-supported Web TV channel reflects the difficulty many online video websites are having. Building businesses of this nature at a time of falling advertising prices is near on impossible.

Another major factor in Joost’s failure was it wasn’t receiving many visitors, as little as 643,365 in May, this compared to Youtube’s 76.5million showed they were not really impacting a competitive market.

For a full detailed review of Joost’s changes check out InformationWeek.

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