Brightcove. More Than A Clever Logo?

Brightcove is an online video delivery network, which enables content producers and owners to upload, manage, and syndicate their content across the web.

The company has distribution partnerships with AOL, TiVO and Yahoo and its founder, Jeremy Allaire was once the Chief Technology Officer at Macromedia. Their board includes executives from various media, technology and Internet companies, and they continue to secure partnerships with media heavy-hitters such as Hearst and Time, Inc.

However, the most exciting aspect of this network are the possibilities it creates for independent content creators, allowing them to insert themselves into a vast distribution network and monetize their content.

While Brightcove is lagging YouTube in the market, it is poised to service professional content creators much more efficiently. It allows creators to launch their own video channel, which is reviewed for participation in the Brightcove Ad Network. If selected for ad placement, creators will earn 50% of the revenue generated. In addition, content can be flagged for digital download, either as a rental or sale item, with 70% of the sales revenue going to the creator. Brightcove handles the payment processing and live customer support, allowing creatives to focus on content development.

My biggest complaint regarding the digital downloads is its dependence on Windows Media, which is the only format supported for pay media. It is probably related to the rental capabilities, which require Digital Rights Management to facilitate, but anything Windows leaves a sour taste in my mouth. However, given Brightcove’s ambitious scope, and Apple’s meager 5% market share, it is unlikely any serious Mac development will occur.

Another advantage is the Brightcove affiliate network and built-in syndication tools, which allows content to travel virally. Much like YouTube, the current leader in viral video, users can blog and link content quickly and easily. This is an important tool for any independent creator, because it allows content to travel beyond its initial scope. Couple this potential audience growth with effective monetization, and independents have a viable model for making money with niche content.

How does Brightcove match up against Apple TV? The models are quite different, but for content creators both are viable. Apple has essentially created hardware to service its very popular iTunes Store, allowing users to now consume video much like they do music. Video podcasts can be distributed via the iTunes Store, and bridge the computer-to-television gap via Apple TV.

What is rather fuzzy, is the ability of content creators to monetize their content within the iTunes Store. Currently, this takes the form of pay-per-download, which may or may not be profitable for a small, niche publisher whose content is rather unknown to the market. Why pay to download a video I might not like? Trusted or popular sources, for example ABC’s Lost, don’t face this problem, but Mr. X’s Super Fantastic Video might wither in obscurity.

Within the Brightcove model, ad insertion in the form of pre-roll, post-roll, and in-roll overlays automatically monetizes content across the Brightcove distribution network. The content is free to view (unless the publisher determines it isn’t), and is able to live beyond its initial distribution point, including via TiVO, which promises to also bridge the computer-to-television gap:

With the TiVo partnership, publishers using Brightcove’s Internet TV service will be able to distribute their content directly to TiVo subscriber set-top boxes, providing TV-quality downloads to consumers. TiVo subscribers will gain access to compelling Internet TV programming that spans news, music entertainment, health and lifestyle, teen, comedy and other special interest content areas that are only discoverable on the Internet. These content download offers will be offered through TiVo Central, TiVo’s web-based service for managing your TiVo service, and may also be promoted by content publishers through their own broadband channels that are distributed by Brightcove. Initially, all of the content will be free to consumers and may include advertising that is downloaded with the content. In a future planned phase, publishers will have the option of charging for content to consumers as well.

While Brightcove is paving the way for niche Internet programming, it’s biggest challenge will be finding quality content.

Definitely an exciting time for independent content producers looking for broader distribution.