Skype founders develop broadband TV service

Janus Friis and Niklas Zennstrom, who created the revolution in the field of telecommunication by launching Skype peer-to-peer phone service in 2003, have now developed a global broadband television service that the Skype founders believe would bring the drastic change in the television field.

According to Zennstrom and Friis, the online video distribution service, codenamed The Venice Project is aimed at to give viewers, advertisers and content owners an unusual choice, control and creativity.

The newly developed service offering ‘the best of the internet with the best of TV’ will offer ‘near high-definition’, programmes supported by advertising, with tools for users to personalize their channels or discuss programmes with others.

Zennstrom and Friis, who sold Skype to eBay for $2.6bn in October 2005, have invested part of the proceeds in developing The Venice Project.

Despite selling their online telephony business to eBay, the two are still eligible to earn a share of up to a staggering $1.5 billion performance bonus from San Jose, California based online auction site over the next three years.

Reminiscing the time when they had rolled out their previous product, Skype, Friis said, "At the time we launched Skype, broadband capacity was extremely ripe for communication."

"Now, three years later, it's the same thing for video: you can do TV over the internet in a really good way. TV is a huge medium – that's something we'd like to be a part of," he said.

The service, currently being tested by 6,000 people, is using peer-to-peer technology, and would possibly serve tens of millions of users, Friis said.

Contrary to other video-on-demand websites like YouTube, the new service will offer conventionally programmed channels and is able to display high-quality, full-screen video on a computer screen.

The Venice Project, which comprises some of the world's best technical and creative people, has reportedly attracted a few big-name channels, though, the company declined to disclose its partners.

The project is expected to be launched next year.