The Joint Venture between Newscorp and NBCU is a big step forward for the TV industry.

There's much talk from people focused on the web, rather than TV, about the limitations of the deal. Much of that comment is sensible in my opinion. Of course there's a high chance that competitors forming a JV will screw things up. MusicNet is a good example of what can go wrong. Also, YouTube has a big lead in working with people who actually create content for the web, rather than just re-purposing stuff off the TV. At some point these and other broadcasters will have to invest more in making web-tailored content, but that's a separate issue.

I am very happy that this JV will work with a range of web properties to distribute the content, rather than just create a new consumer brand. TV industry folk normally talk about web ventures in terms of 'disintermediating' cable/satellite players or extending their 'editorial' relationship with the consumer. This deal signals a relaxation of those ambitions by two big players - a crucial step if we are to create new and better ways of consuming video content online.

Working with distributors, rather than building a consumer brand, brings other advantages too. The new organisation could potentially be much smaller because it can focus on just aggregating great content together with adverts, rather than building relationships with end-users.

The more focused the organisation's role, the more likely it is to succeed. Perhaps the best example of this principle is the bankcard associations - Visa and Mastercard. These have achieved double-digit growth for decades, but confine themselves to switching transactions between banks and maintaining their 'acceptance mark' brands. All other tasks are left to member banks and data processing specialists.

The best TV example of the same principle is Freeview, the U.K. consortium of broadcasters that in 4 years reached more homes than Sky had managed in 16 years. The Freeview organisation maintains set-top-box standards and the EPG, but runs no channels or distrubution infrastructure, and has no direct end-user relationship.

I'm hopeful that this venture will become an important part of the way video content is distributed online, and that broadcasters will follow the lead. Now they just need a name!