What we're doing with video chat is taking it to the next level with full multimedia. What's different about the software is that it runs directly within a Web browser as an ActiveX control, so unlike White Pine's full CU-SeeMe videoconferencing client, it doesn't require you to manually download, install or configure the software. White Pine claims that the site so far has attracted 200,000 members. Landry says a hosted version is in the works, so a site wouldn't be required to set up and maintain its own video chat server. White Pine negotiates additional revenue-sharing fees based on the advertising generated from the video chat application.
Video chat is an incredibly sticky application.
This keeps people on your site for a long time. Telia last week said it will initially offer the video chat service to 1,000 customers subscribing to its new broadband Internet access service. White Pine has not been profitable since it went public more than three years ago, though in recent quarters its losses have narrowed. Clearly, White Pine could see a big payoff if its video chat software becomes as widespread as text-based chat services. But Lydia Loizides, an analyst at Jupiter Communications, says Internet videoconferencing is still not ready as a mainstream play.