Hulu

In late 2006, I had the opportunity to become a beta tester for Joost, an Internet TV service.  The product was exciting and seemed to be the next wave of content distribution for the web.  I downloaded the Joost video player, and within 15 minutes I was watching television channels from around the world.  There were movies, sports, classic shows, documentaries, and much more.

So given this exciting technology, why did Joost announce this week that they are reinventing their business, with a new service and business model?  The plan is to abandon ad-supported television shows and instead become a video technology provider to media companies.

The reasons why provide a cautionary tale for any new business owner or entrepreneur looking to grow a company.