Joost, the on-demand video service, has raised $45 million from five investors that include CBS and Viacom, who are also content providers for the service. The other investors are Index Ventures, Sequoia Capital and Hutchison Whampoa chairman Li Ka-shing.

Joost was started by the founders of Skype Janus Friis and Niklas Zennstroem, who set up Joost in January 2006 to offer broadband users full-screen, high-quality video on their computers. The two were also behind the music site Kazaa, which enabled free music downloads.

Index Ventures is a European venture capital firm, while Sequoia Capital is described as having been the first investor and business partner of companies making up 10 per cent of the value of the Nasdaq hi-tech index.

Joost, Joost has 150 channels of online content, has signed deals with content providers such as Viacom, which is providing content from MTV, Nickelodeon, Paramount and Comedy Central.

Broadband has boosted online video viewing.