LONDON — On-line TV pioneer Joost is to abandon its proprietary P2P desktop client application in favour of delivering video on plug-in browsers over the web.

Joost started as The Venice Project and raised many expectations, and significant VC funding, especially as Skype co-founders Janus Friis and Niklas Zennström were involved.

However the company has experienced trouble acquiring fresh content and the service is also now facing increased competition from an ever growing number of online streaming and on-demand video sites.

The revised strategy will be to access video via a dedicated website, much like the iPlayer from the BBC in the U.K. and Hulu in the U.S. However, unlike the service from the big broadcasters, Joost's application will not use Adobe's Flash, but rely on its own browser plug-in that will tap the P2P technology Joost has spent millions developing and implementing.

"Video plays directly in the browser as opposed to a separate piece of software," said Joost spokesperson Kerry Vance. "And there are more tools available (on a browser) to find videos that you want to watch."

Launched with much publicity early last year after attracting a line-up of blue chip ibackers, who have invested more than $45 million in the firm. Investors include Sequioa Capital, which backed Yahoo, Google and YouTube; Index Ventures, an early investor in Skype; Li Ka-shing, the Hong Kong tycoon; and US media groups CBS and Viacom.

However, after disappointing reviews and problems accessing exciting content, Joost reorganized and reduced its workforce while it rewrote its business plan.

Originally based in Europe, it tried to get local broadcasters to distribute its programmes, but was rebuffed and moved its operations to the U.S.

The online video market still appears to be sorting itself out with dozens of well-financed companies and partnerships clamouring for leadership.

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