Test-Driving Joost: Beyond Slick, and Not Really a YouTube Competitor

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By Douglas A. McIntyre Published
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From Internet Outsider

Joost was kind enough to make me a beta tester, so I spent a half-hour last Friday checking out the service.  Key observations:

  • In its current form, Joost is more like TV than online video.  As a result, it is not yet a direct competitor to YouTube.
  • The interface is super-slick: Full screen, floating translucent menu bar, high-quality sound and video.  Even if it were possible to watch amateur videos on Joost, you would not want to–because they would look horrible.
  • Joost will be awesome for watching music videos, movie trailers, and sports highlights.  These categories constitute a meaningful percentage of YouTube views, so there will be some overlap (although I still can’t understand why music and movie companies would not want these videos available everywhere).
  • The user-experience is definitely more video-on-demand than Internet, and this will likely create tension for those who like to consume their online video at work: Watching a few short clips on YouTube while checking online news and email is one thing.  Ginning up the "Soccer Channel" and watching the "100 top acrobatic goals" for a half-hour is another.
  • Unlike YouTube, which is all about video storage and delivery and user choice, Joost appears to be at least half about programming.  This will certainly appeal to traditional media companies, who love programming.  Whether it will appeal to impatient, busy Internet users who hate being programmed, however, is another question.
  • Joost’s advertising currently takes the form of "brought to you by" full screen ads with logos that precede the launching of your "channel" selection.  These are unobtrusive, tolerable, and vastly preferable to pre-rolls, which make you loathe both advertiser and content provider.  They also presumably don’t generate anywhere near as much revenue.
  • Bottom line: Joost is a full-on entertainment tool that will compete with traditional television as much as it competes with YouTube.  The risk for the company is that the service will end up being neither fish nor fowl: Not as good as TV (the "100 top acrobatic goals" are good on a 17-inch PC screen, but amazing on a 42-inch TV), and not as simple, convenient, and user-driven as YouTube.  It should be a hit with those who live on music videos, though. 
Photo of Douglas A. McIntyre
About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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