Zennstrom, Niklas, and Friis, Janus

▪ 2008

born 1966, Sweden

and

born 1976, Denmark

      With the commercial launch in May 2007 of Joost, a global platform for viewing television programs—for free—via the Internet, entrepreneurs Janus Friis and Niklas Zennström, who a year earlier had already made Time magazine's list of the 100 most influential people, once again tapped the Internet as a means of delivering services and entertainment to individual users. Joost's central product was software that made it possible to view streaming-video content through an Internet connection. Unlike YouTube, however, which was dominated by short video clips uploaded by individuals, Joost provided a wide selection of primary TV programming from such established content providers as CBS, Warner Bros. Television, National Geographic, and Comedy Central and gave users complete control over which shows to watch and when to watch them.

      Zennström studied business and engineering physics/computer science at Uppsala (Swed.) University and the University of Michigan. He began his career at Tele2, a Swedish telecommunications firm, where he hired Friis, a self-taught telecom operator who had launched his career as a help-desk staffer for CyberCity, an Internet service provider (ISP). The first Zennström-Friis ventures were the ISP get2net and everyday.com, a Web portal. The partners gained popularity (by providing access to free media content) as well as notoriety (largely because of copyright lawsuits) through their next Web service, KaZaA, a free file-sharing site that competed with peer-to-peer music platform Napster. Legal challenges from music and film companies concerning copyright infringement ultimately cost Friis and Zennström more than $125 million, even after they had sold their shares in KaZaA in 2002. They continued to develop other successful ventures, however, including Joltid, a provider of traffic-optimization software, and Altnet, a peer-to-peer wholesale network.

      The duo's next major breakthrough was Skype Technologies SA, which applied the increasingly popular VoIP (voice-over-Internet protocol) technology. Skype offered free basic phone service (including long-distance and international calls) through the Internet, with the firm's earnings coming from fees levied on services (such as voice mail, call waiting, and downloaded ring tones) and imposed on calls placed to land-based telephones. Although they sold Skype to eBay in 2005 for $2.6 billion, in 2007 the partners remained on board, with Zennström as CEO and Friis as executive vice president of innovation. Their reduced responsibilities, however, left them free to pursue interests, notably Joost NV, which they founded in January 2006. Unlike Skype, Joost was designed to earn money through advertising; and unlike KaZaA, Joost would protect copyrighted material for all content providers. A beta (test) version of Joost was made available to invited users in early 2007, and by the official launch in May, Joost's global sponsors included Nike, Intel, Coca-Cola, Microsoft, and Kraft. Zennström conceded in August that Joost might introduce a pay-per-view structure for certain kinds of programming, while others hinted that Joost might eventually deliver its content to TV screens.

Sarah Forbes Orwig

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