Why Joost canceled its P2P application

joostendLike me, you may have received this friendly email from Joost this week politely informing you that the original Joost application will no longer function as of December 19th.

That’s fine with me, I uninstalled it a long time ago in favor of Joost.com.

For those of you unfamiliar with Joost’s roots, this is a rejection of the Peer-2-Peer (P2P) model that Joost originally built itself on. In early 2007, P2P was going to be the bomb. BitTorrent (the company, not the protocol), was positioning itself as the most cost-effective way to deliver HD content; Joost was launched in the same fervor as the brainchild of the founders of P2P network Kazaa . Back then, delivering video streams cost between 25 and 35 cents per gigabyte depending on your deal with Akamai. P2P was billed as a way to cut costs down to 5 cents. 

Fast forward to today, where CDN competition and great volume deals have gotten streaming down to between 6 and 8 cents per GB. Not as cheap as P2P, but darn close, and with better control over content. Plus, your viewers don’t have to download resource-hogging P2P apps.

Streaming is the proverbial wave of the future. With 61% of the population connected via broadband, with the rise in quality of streaming, streaming is the way that the lion’s share of online content will be delivered for the next few years. By cutting its P2P app and going all .com, Joost is merely accepting the facts and trying to build an audience for itself using the simplest method — an open website. And looking at Joost’s site metrics in the few months it has been available as a dot com, it’s clear this friction-free delivery method is working for them.

In fact, streaming is so easy, we expect piracy to shift from downloading via bittorrent to streaming from sites like megavideo.com.

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