BitTorrent, Joost To Create Competing TV Net Sites

by Wayne Friedman, Tuesday, Mar 20, 2007 7:00 AM ET
HOLLYWOOD, CA--BIG PEER-TO-PEER INTERNET COMPANY BitTorrent says it wants to join the race to create an ad-supported TV program Internet site.
During a panel session at the OMMA conference called "Big Media--Disintermediated," Eric Patterson, vice president and general manager of consumer services for BitTorrent, said the peer-to-peer technology company will be looking to launch a new Net TV service. Another peer-to-peer company, Joost, has already said it would launch a TV programming Internet service.
"We see us moving to an advertising-supported model at the end of the year so people can consume TV shows in the same way they consume programs on television," said Patterson, who didn't disclose any other details.
BitTorrent is a massive peer-to-peer technology company. Some 135 million people worldwide have downloaded files using BitTorrent, some one-third of all P2P traffic on the Internet. Last month, BitTorrent launched BitTorrent Entertainment Network, a new service that has compiled the rights to more than 3,000 movies, 1,000 games and 1,000 music videos from 34 participating content providers. The network has deals with Paramount Pictures, Lionsgate, Warner Bros. and MGM.
Like iTunes Music Stores, the BitTorrent business is a pay Internet service, where users can rent movies for $4 each, download-to-own TV shows and music videos for $2 each. BitTorrent also plans to add a digital-rights-management-free music download service in the near future.
Recently, Joost announced it had a deal with Viacom. As part of the agreement, the big media company would provide Joost with hundreds of TV shows. Joost is in beta test right now, and will launch later this year.
Joost founders started up Kazaa, the peer-to-peer Internet music downloading Internet company, and Skype, the peer-to-peer technology Internet phone service. Like BitTorrent, Joost executives believe that using peer-to-peer technology averts the coming broadband capacity crunch.
Both Kazaa and BitTorrent have had a history of unauthorized digital-content distribution. Now the founders of both companies are setting themselves up to provide above-board digital-entertainment services.