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Analysis for 'Brightcove'

  • Brightcove Q2 '12 Revenues Climb 41%; Zencoder Acquired For Move Into Cloud Services

    Brightcove reported a solid Q2 '12, its second quarter as a publicly-traded company, with revenues rising 41% year-over-year to $21.6 million and its loss from operations narrowing to $3.9 million vs. $5.1 million in Q2 '11. Brightcove said it now has 4,697 customers of its Video Cloud and App Cloud platforms. For video specifically, during the quarter, Brightcove added 365 "Express" customers (which are $499/month and below) and 78 "Premium" customers, which run into the thousands of dollars/month.

    Brightcove also announced its acquisition of Zencoder, a cloud video encoding service that counts 1,000 paying customers, for approximately $30 million. Brightcove views Zencoder as a product augment for its Video Cloud platform and also sees the company's Video.js free HTML video player as a lead generation driver for its Express services.

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  • Brightcove's Eric Elia: "We're Going Through the Third Phase of TV Transformation" [VIDEO]

    Eric Elia, Brightcove's VP, TV Solutions came by the VideoNuze booth at the recent NABShow and explained what he sees as the "third phase of TV transformation." Eric believes companies like Amazon, Netflix, Apple and others are helping make it "OK to put a dollar euro sign in front of content." Brightcove has seen a huge surge of interest from aggregators and content providers in providing paid services.

    Eric also shares insight about how cable TV networks are beginning to embrace content distribution via apps, a big change from just a year ago. Eric cites the catalyst for this as the launch of apps from Comcast and Time Warner Cable, which have signaled to networks that it's acceptable to distribute this way, as long as the billing relationship, via authentication, remains intact.

    At the NABShow, Brightcove announced its "paywall solution framework" and support for Google's Widevine DRM.  Sample applications for connected TVs. See video below (13 minutes, 35 seconds)

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  • Brightcove Powering NBCU's New Emmy Screener iPad App

    Brightcove is powering NBCU's recently-launched Emmy screener app for the iPad dubbed "NBCU Screen It" with its App Cloud and Video Cloud platforms. The app allows 15,000 members of the Television Academy who vote on the Emmy awards to gain authenticated access to view NBC's programs.

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  • Brightcove Files $50 Million IPO, Investors Get A Rare Pure-Play Opportunity in White-Hot Online Video Space

    Cloud-based video platform provider Brightcove has filed to raise up to $50 million in an initial public offering (IPO). Rumors of an IPO have floated around Brightcove almost since the company's inception 7 years ago, but gained steam in the last year as the company hired Chris Menard as its CFO (who previously served as CFO of publicly-traded Phase Forward). Given the choppiness in the public markets, it's not clear when the offering will occur, but when it does Brightcove will give investors a rare pure-play investment opportunity in the white-hot online video space.

    Brightcove's S-1 reveals the company has nearly 3,300 customers in 50+ countries, including The New York Times Company, Oracle, Showtime, Philips Electronics and Macy's. Revenue in the first 6 months of 2011 were $28.4 million, up from $20.3 million in the first 6 months of 2010. Brightcove's net loss was $17.8 million in 2010 and $9.7 million in the first 6 months of 2011. The company has raised nearly $100 million to date and cash on-hand exceeded $24 million on June 30th.

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  • Brightcove Expands Beyond Video, Introduces "App Cloud" Platform

    Brightcove is introducing a new product this morning called Brightcove App Cloud, a platform which allows content publishers to build and manage apps and "touch" web sites for iOS and Android devices. The move is the first product expansion beyond video since Brightcove's inception. Brightcove is also announcing that it has changed the name of its video platform to Brightcove Video Cloud and that it is positioning the company as a "cloud content services company." Brightcove's SVP of Marketing Jeff Whatcott brought me up to speed on all the moves late yesterday.

    The App Cloud initiative is based on feedback from content customers that it is becoming increasingly necessary for them to develop content experiences for smartphones, tablets, connected devices and social media sites like Facebook, all of which go beyond traditional web sites. However, these requirements have introduced massive complexity and cost to content publishers, forcing companies to choose between creating low-end apps using "app factory" tools (as Jeff described), or more custom experiences leveraging native SDKs. This tradeoff between the former's strong affordability and reach vs. the latter's flexibility and power has created what Brightcove sees as a gap in the market for a robust "app platform."

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  • VideoNuze Report Podcast #89 - Feb. 25, 2011

    I'm pleased to present the 89th edition of the VideoNuze Report podcast, for February 25, 2011.

    In this week's podcast, Harold Geller, the SVP of Cross-Industry Workflow at the 4As (American Association of Advertising Agencies) joins me, sitting in for Daisy Whitney. Harold and I discuss the busy week online video platforms have had, including Ooyala's deal with Yahoo! Japan, thePlatform's with Telstra's BigPond TV, Brightcove's integration with LG's Smart TVs, and VBrick's acquisition of Fliqz.

    One of the takeaways we see from this activity is that online video platforms and video delivery to connected TVs (and other devices) are starting to converge. Harold also notes a couple of recent conversations he's had which further suggest that OVPs and online video advertising players will be playing a greater role in ad insertion in video-on-demand offered by traditional pay-TV operators. That would be a pretty interesting new twist in the VOD story. More on this next week.

    Click here to listen to the podcast (14 minutes, 55 seconds)

    Click here for previous podcasts

    The VideoNuze Report is available in iTunes...subscribe today!

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  • Brightcove Integrates With LG Electronics Smart TVs

    Brightcove is announcing a partnership this morning with LG Electronics that will allow its publishing customers to deliver content directly to LG NetCast Smart TVs. The deal continues the trend around delivering high-quality video content to connected devices, which is becoming a significant differentiator for consumer electronics companies.

    As part of the partnership, Brightcove said it will release a set of tools and support services later this year, including a reference app that will serve as a starting point for customers to deliver content to LG Smart TVs. Initiatives like these, which continue to legitimize connected TVs as a bona fide online video viewing platform, are a boon to consumers who are able to access a broader range of content directly on their TVs than what has traditionally been offered by their pay-TV provider.

    What do you think? Post a comment now (no sign-in required).
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  • Newspapers Cranked Out More Online Videos In 2010 Than Any Other Media Vertical

    U.S. newspapers uploaded approximately 2.4 million videos in 2010, more than 3x the volume of the next-closest industry verticals of broadcast and online media, according to the latest "online video & the media industry" report from Brightcove and TubeMogul for Q4 '10. Newspapers uploaded 1.2 million titles in Q4 alone, a 147% increase in volume over Q3. The accelerating trend suggests newspapers are deepening their commitment to online video as a way of boosting online engagement and increasing ad revenue. The new data also seems to offset recent news that newspapers are reducing their involvement with online video.

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  • Brainshark Partners With Brightcove To Publish Video Presentations

    Brainshark, which allows users to add voice, music, video and interactivity to PowerPoint and other documents transforming them into video presentations, announced this morning that these can now be "pushed to Brightcove" to achieve greater reach. Brainshark is primarily geared to business users for communications and viewing sessions are fully measurable. Brightcove, which has a large base of media customers, has also moved into non-media verticals such as small business, government, education, etc. The partnership is further proof that flexible, inexpensive tools are becoming available to businesses to help them increase their online video/media competencies.
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  • Brightcove Opens Korea Office, Lands New Customers

    Brightcove is announcing this morning an expansion of its Asia-Pacific operations, with a new sales office in Seoul, Korea to be led by James Yoon, a former 24/7 Real Media sales executive. He'll report into VP of APAC Dennis Rose. Separately Brightcove reported adding 4 new Korean customers, Autodesk Korea, Cheil Worldwide, Overture Korea and Proctor & Gamble Korea.

    Korea seems like a natural place to expand given its historically high broadband penetration (ranked #5 in the world), leadership in mobile and headquarters for both Samsung, which is making a very strong push into online and mobile video, and LG. There should be no shortage of opportunities for helping manage online and mobile video.

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  • Brightcove 5 Launches

    Brightcove is launching the next version of its online video platform today, dubbed Brightcove 5. It is a free upgrade to existing customers and will be fully rolled out by mid-January 2011. Brightcove 5 expands on the themes of Brightcove 4 (released in Nov. '09): delivering video to more devices/places, enhancing the financial return of online video and improving publishing productivity. Brightcove's president and COO David Mendels walked me through the key highlights last week:

    - YouTube distribution - publish video and metadata simultaneously to YouTube channels so that content on both owned properties and on YouTube remain in synch.

    - Streaming support for Apple iOS devices - integrated multi-bit rate delivery for iPhone, iPad and iPod Touch.

    - Updated mobile app SDKs for iPhone and Android - enhancements to those released in Brightcove 4, plus a new reference app for the iPad.

    - Improved analytics - over a dozen new reports for tracking video playback.

    - Integrated HTML5 and Flash analytics - in partnership with TubeMogul, reports now aggregate HTML5 and Flash video metrics into one view.

    - High-quality live-streaming and DVR functionality - using Akamai's HD network, multi-bit rate HD live-streaming plus DVR rewind in live events and ad insertion.

    - New "Smart Players" - single video player design for HTML5 and Flash video with browser auto-detection feature serving the right format to each user.

    - Accelerated file upload - integration with Aspera for faster video uploads.

    - Mobile video upload from iPhones - app that allows remote users to edit and upload video to their Brightcove accounts.

    Brightcove separately announced that it will hold its first customer conference, Brightcove PLAY, May 23-25 in Boston.  

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  • Report: Newspapers Lead in Off-Site Viewership Rate

    When it comes to videos being viewed off of their own web sites through embedding, it turns out that newspapers lead all other verticals, according to a new Q2 '10 online video usage report from Brightcove and TubeMogul. For newspapers, 13.6% of their videos are consumed off-site, whereas for broadcasters, which had the lowest percentage of off-site viewership, it was 1.9%.  

    For minutes watched per view on-site vs. off-site, newspapers decline a little, from 1:25 minutes on-site to 1:10 off site, far better than broadcasters which dropped from 3:00 minutes to 1:59 minutes. Only one vertical, online media, actually increased its off-site viewership time, to 1:45 minutes from 1:32 on-site. Whether through proactive syndication or making video embeddable on other sites so that users can virally distribute video, off-site viewership is important because it helps bring content to where users already are, rather than forcing them to come to a destination site. Of course, more views equals higher monetization. With their primarily short-form video, newspapers are well-suited to off-site consumption, and from the data it looks like they understand this and are taking advantage.

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  • Brightcove Doubles Global Customers to 1,800, Eyes Asia with New VP

    In a show of continued strength, Brightcove is announcing that in the first half of 2010, its customer base doubled to 1,800 media publishers worldwide. This was fueled in part by meeting demand overseas in Europe and Japan. Continuing to look towards Asia as its next major growth area, Brightcove also announced hiring Dennis Rose, a veteran from the software company Citrix, as vice president for the Asia-Pacific (APAC) region.

    On top of expanding sales geographically, Brightcove is benefiting from the mushrooming uses of online video and the changing definition of a "media publisher" (this echoes Will's post about IBM's use of video from last week) For example, its Japanese subsidiary, Brightcove KK, signed a number of marketing and e-commerce companies from many different sectors, including high-end fashion, healthcare, and even Japan's very first Girls Professional Baseball League. Additionally, Brightcove has been making strides into the growing mobile space, adding Android support, HTML5 support, and more importantly working with Freewheel to help monetize that HTML5 video.

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  • Brightcove Partners With Akamai HD Network for Bundled Delivery

    Online video platform Brightcove is transitioning its bundled content delivery offering to the Akamai HD network, for which it will now be a value-added reseller. Jeff Whatcott, Brightcove's SVP of Marketing, explained to me last week that the decision was made in reaction to its customers'  delivery requirements becoming more complex.  Akamai HD's differentiators included improved economics, analytics, mobile delivery and global coverage among others.

    Though the deal isn't exclusive, it will involve Brightcove moving over all of its customers who have been using the bundled delivery offering from Limelight, Brightcove's prior delivery partner. Jeff estimates more than 80% of Brightcove's customers take advantage of bundled delivery, though from Brightcove's standpoint, the fees it derives from delivery are small relative to its software and platform fees. Going forward, Brightcove will continue working with Limelight and other CDNs with whom it has relationships.

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  • Brightcove Extends Platform to Serve Android Mobile Devices

    Brightcove is announcing this morning that it has extended its platform to serve Android mobile devices, the latest sign of momentum behind Google's mobile operating system. The new functionality includes an SDK for Android and new mobile templates for Flash Player 10.1, which together cover the spectrum of video viewed in apps and in browsers. Brightcove's president David Mendels provided further insight in a briefing last week.

    What Brightcove is now doing for Android mirrors what the company did for the iPhone last November in the Brightcove 4 launch. Resources included in the Android solution are pre-built components for playback, content discovery, and connections into the Brightcove Media API. Next on the Android support roadmap are easy sharing to social media sites, improved navigation and discovery. For Flash 10.1, Brightcove has created a set of templates that will adapt to mobile devices and their playback context. These include right-sized player controls and a UI for smaller mobile screens. Flash 10.1 is now available for Android devices running Android 2.2 ("Froyo") and is also supported on BlackBerry, Windows Phone 7, Symbian and others.

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  • Brightcove, FreeWheel to Launch HTML5 Video Ad Solution

    Building on the momentum around HTML5 and all things iPad-related, online video platform Brightcove and video ad management firm FreeWheel are announcing plans today to launch an HTML5 video ad solution this summer. The companies are already partners and share many mutual customers; the new solution means that customers using both platforms will be able to insert ads on HTML5 compatible devices like iPads, iPhones and iPod Touches when it is available. The move is a positive step for content providers who have rolled out iPad apps but not necessarily with monetization included.    

    Earlier this year Brightcove unveiled its "Brightcove Experience for HTML5" which auto-detects HTML5 devices, in turn delivering compatible content. Now with the FreeWheel piece, in-stream video ads will be delivered as well. No doubt, as Apple and other non-Flash devices continue to proliferate additional HTML5-focused platform/ad solutions will follow.

    What do you think? Post a comment now (no sign-in required).

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  • VideoNuze Report Podcast #60 - May 7, 2010

    Daisy Whitney and I are pleased to present the 60th edition of the VideoNuze Report podcast, for May 7, 2010.

    In today's podcast Daisy and I discuss research that Brightcove and TubeMogul released yesterday on online video consumption and engagement in the media industry. Though the data isn't statistically significant, the report caught our eye because it offers a great assortment of insights based on actual platform data plus survey responses. It's freely downloadable here. Listen in to hear our reactions.

    Click here to listen to the podcast (13 minutes, 47 seconds)

    Click here for previous podcasts

    The VideoNuze Report is available in iTunes...subscribe today!
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  • Brightcove Lands EMI Further Fueling Music Videos Online

    Brightcove is announcing this morning that EMI Music has chosen the Brightcove platform to power its online video initiatives corporate-wide. According to Brightcove, the EMI deal means that all of the big 4 music industry groups, including Sony, Universal, and Warner, are now using its platform. Shifting to a heavy-duty platform like Brightcove is further proof that the music industry is getting more ambitious about its online opportunities.

    While there has been much coverage over the years of illegal music downloading, online video on the other hand has become a big friend to the music business and to artists in particular, opening up new monetization and promotion opportunities. Music videos specifically are a key revenue opportunity for labels, through advertising and by licensing to 3rd parties for their distribution. Live streaming concerts, complete with behind-the-scenes extras have become extremely popular.  Social media, online playlists and video sharing have all contributed to music purchase/download behavior.  Going forward, the growth of video-enabled mobile devices (e.g. iPhone, Android, iPad, etc.) that make on-the-go playback and shared viewing the norm provides more momentum.

    According to eMarketer, consumer spending on music is set to increase 11.4% annually over the next 4 years to $4.56 million in 2013, with all of the growth forecast to come from online. Most of this is assumed to come from a shift to subscription, cloud-based music services, and I would anticipate music videos and concerts playing a larger role going forward as well.

    Though the specific business models are still evolving, I think that music videos have a long way to run. The recent launch of Vevo, by Sony, Universal and YouTube, and its almost immediate rise to the top 10 most popular video sites (32.3 million unique viewers in January according to comScore) is fresh evidence of how much users like online music video access. Music videos are the perfect format for today's online video user because they are short-form, can be played while performing other tasks and can be shared easily. When convergence devices that bridge broadband all the way to the TV become widespread, then longer-form programs will increase in popularity; until then music videos are in the sweet spot.

    What do you think? Post a comment now (no sign-in required).

    Note: Fred Santarpia, GM of Vevo, will be on the April 26th VideoSchmooze panel in NYC. Early bird registration opening soon, stay tuned.
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  • Spotlight is on Video as Mobile World Congress Begins

    As the biggest annual mobile conference - the Mobile World Congress - gets underway today in Barcelona, new initiatives from some of the biggest names in technology underscore the growing importance of smartphones and of mobile video specifically. Among the most important headlines:

    - Microsoft's CEO Steve Ballmer is unveiling Windows Phone 7 which includes Xbox LIVE games, Zune video and audio, plus enhanced sharing. With Phone 7 Microsoft is continuing to vie for position in a crowded smartphone operating system landscape.

    - Sony Ericsson is launching "Creations" allowing users to create and publish video, audio and images from their mobile phones in collaboration with professional developers.

    - AT&T and 11 other mobile service providers, which together have about 2 billion subscribers, are introducing a new applications store designed to appeal to developers and compete head-on with Apple's App Store.

    - Symbian is taking the wraps off its new Symbian 3 open source release, which includes support for HDMI, so that users can connect their Symbian phones to their TVs and watch 1080p video, in effect creating a Blu-ray player in your pocket.

    - Intel and Nokia are merging their respective Moblin and Maemo software platforms to create MeeGo, a unified Linux platform to run across multiple devices.

    - Adobe is providing an update that by mid-2010, its AIR runtime for building rich applications will be available for Android and that Flash 10.1 will be generally available for various mobile platforms, including Android. In addition, Adobe is announcing that Omniture, which Adobe recently acquired, will add mobile video measurement within its SiteCatalyst product.

    While each announcement, plus countless others, have their own significance in the burgeoning mobile ecosystem, the one that's most relevant to mobile video specifically is the coming availability of Flash 10.1, especially for Android. Mobile video has been hampered to date with the lack of Flash player support on iPhones, so its pending launch on Android phones threatens to scramble the relative appeal of these devices for users eager to watch video from sites like Hulu on their smartphones.

    Late last week I got a glimpse of how significant Flash on smartphones is from Jeff Whatcott, SVP of Marketing at Brightcove, which today is announcing an optimized version of its platform for Flash 10.1, to be released in the middle of 2010. Adobe has made the beta of Flash 10.1 available to content providers, and Jeff has a video showing how it works with Brightcove for its customers like and The Weinstein Company.

    Brightcove has done 3 things - optimized its template for mobile devices (so navigation and interactivity is seamless on the small screen), enabled auto-detect of mobile devices (so the correct Brightcove template is served) and leveraged cloud-based transcoding (so a mobile-ready H.264 encoded video is streamed). The goal is for Brightcove's customers to be able to deliver an optimized mobile and Flash experience identical to their online experiences, with minimal additional work flow. Brightcove provides the appropriate logic for mobile templates to its customers which they embed in their pages. When a user visits from a mobile device and clicks to watch video, the right Brightcove-powered experience is delivered.

    All of the above activity is happening in the shadow of the now-dominant iPhone (and coming release of the iPad) which do not support Flash. As non-iPhone devices - and content providers - progressively incorporate Flash this year, it seems like the smartphone market is poised for another new turn. Flash is the dominant video player and as users look to replicate their online experiences on their smartphones, the void of Flash on iPhones will become even more pronounced. I don't underestimate Steve Jobs or Apple's ability to compete, but this will be one place where it feels like the iPhone will be at a real disadvantage. Apple is keen to prevent Flash from extending its online hegemony to mobile as well, so it will be interesting to see how it chooses to play this.

    What do you think? Post a comment now (no sign-in required).

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  • Brightcove Makes Its First Move Into TV Everywhere

    This morning Brightcove is making its first TV Everywhere ("TVE") related announcement, introducing its "TV Everywhere Solution Pack" (TVE-SP), which is the Brightcove 4 enterprise edition augmented with new components and services to support TVE rollouts. It is also unveiling a strategic alliance with Ping Identity to integrate its PingFederate security software with TVE-SP, to enable user authentication and authorization. Lastly, Brightcove has promoted Eric Elia from VP of Professional Services to VP of TV Solutions, charged with leading the company's TVE initiatives. Brightcove's CEO and founder Jeremy Allaire briefed me last week.

    To understand how TVE-SP fits in, it is important to quickly review the TVE model. To date, most discussion of TVE has focused on multichannel video programming distributors ("MVPDs") providing their subscribers with online access to TV programming through their own portals or services, for no extra charge (e.g. Comcast's Fancast Xfinity TV). Receiving less attention so far is that the programmers who agree to participate in MVPD portals will likely require they are also able to offer their same programs on their own sites, which are an increasingly important part of their brand identity and direct-to-consumer focus.

    Something else that hasn't received a lot of attention to date is that not all MVPDs will follow Comcast's model of managing, hosting and delivering the online programs themselves. Rather, some MVPDs will prefer to provide just the barebones online navigation, with TV programmers providing an embeddable video player and also delivering all the programming. Less-resourced MVPDs could end of relying heavily on programmers to power their TVE offerings. Where programmers already have online video platforms such as Brightcove in place, these OVPs are in a position to influence how TVE operates. (As a sidenote, I've heard multiple times that Comcast itself is also offering a white labeled version of its FXTV portal to other MVPDs).

    All of this means there's likely to be plenty of heterogeneity in TV Everywhere rollouts. Recognizing this, a key part of Brightcove's product strategy is aligning with Ping to use PingFederate and the SAML 2.0 standard for user authentication and authorization. SMAL is used to exchange data between domains (e.g. between a TV programmer, whose web site visitor is trying to access a certain program and an MVPD which holds that user's subscription profile). This type of secure exchange will be essential for TV programmers to offer their own programs on their own sites in a TVE world.

    SAML has been widely used in the SaaS business applications and Ping itself lists Comcast, Cox, Bell Canada and Discovery, among others, as customers. However, I suspect these are likely on the enterprise side, not the consumer-facing side. As a result, Brightcove's approach will require significant testing before it will be deemed acceptable by MVPDs. In fact, Brightcove's new white paper indicates that additional standards are required and that some of this is underway at CableLabs, the cable industry's development lab.

    It's also worth noting that thePlatform (owned by Comcast) has 4 of the top 5 U.S. cable operators, plus Rogers in Canada, as customers, and ExtendMedia has the major U.S. telcos, plus Bell Canada, as customers. With Brightcove powering video at 60+ TV programmer websites, there are no doubt some interesting dynamics ahead as these OVPs' customers negotiate their TVE relationships and influence the interoperability of their respective technology providers. For its part, thePlatform, which also supports many content providers' video, introduced last November an "Authentication Adaptor" as part of its media publishing system to smooth the authentication and authorization process for programmers offering TVE shows on their own sites.

    Confused yet? This is pretty dense stuff, and illustrates some of the hurdles ahead for TVE's widespread rollout. Meanwhile, lurking over TVE's shoulder are the raft of over-the-top alternatives (e.g. Netflix, Boxee, Apple, Xbox, YouTube, etc.) that are sure to gain additional traction with consumers (as a sidenote, yesterday's Best Buy Sunday circular promoted no fewer than 5 Blu-ray players as Netflix compatible, with each showcasing the Netflix logo).

    As the TVE story unfolds, Brightcove is sure to be in the middle of the action given its market presence and technical capabilities. But how it all shakes out remains to be seen.

    What do you think? Post a comment now (no sign-in required).

    (Note - Brightcove, thePlatform and ExtendMedia are VideoNuze sponsors)

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