Thursday, November 02, 2006

Brightcove Wants Video Dominance

Brightcove is transitioning from online video tools company to operator of a video search and upload site, advertising agency, and technology platform, according to Marketwatch's Bambi Francisco.

While there are efficiencies in providing all services, that's a lot of areas of expertise for one company. Publishers such as partner Time-Warner may not want to put all of their eggs in one basket and prefer to sell their own advertising. Also, conflicts will result when companies that want to be a video destination are buying technology from a company that is a competitor.

If I were them I'd focus on the technology and distribution aspects, becoming the Akamai-like experts in video distribution. Bundling the advertising piece will work with some clients, but not everyone. Competing head on with YouTube etc. for eyeballs will be a rough business that could take away from the lucrative margins of the technology side of the business.

Posted By John Gartner at 04:13 PM
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