Joost has reached advertising agreements with over 36 companies, with many insisting that they will only have advertisements placed next to content that has been cleared for copyright.
Joost’s business model is based on revenue sharing with content providers. Advertising most likely will be in the form of 3 minutes of advertisements per one hour of content.
Can an online streaming video service like Joost survive with only legitimate content that has been pre-approved to not have copyright violations? Advertisers is many ways wield more power than copyright holders.
Joost’s ability to make money will be directly linked to its ability to monitor its site for copyright violations. If they appear to not be responsive, advertisers may pull their money.
That is a tough position for a start-up. If YouTube had to operate under those same conditions in its infancy, it may not be the site it is today.
