Brightcove Gets a Bigger Piece of FOX
Brightcove, an online video infrastructure provider, says it has signed a deal with Fox Entertainment Group (FEG) which will be used for various different Fox properties to go online, and build ad-supported Internet video channels. includes the Fox Studio, Fox Broadcast Network, and Fox’s 9+ cable channels. They have already recently launched channels around shows on FX, Fox, and SPEED TV (sports channel).
Brightcove, which has raised huge amounts of money is slowly becoming an infrastructure provider of choice for large content providers, mostly because the company has developed tools that integrate with their existing production tools.
It also raises the question: should Jeremy Allaire and his crew even bother going after the consumer/independent video creator market? Why not focus entirely on the large media companies?
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Interesting question posed…
Let’s face it, the technology for video and dynamic ad serving is nearing off-the-shelf status. All that really matters are the advertising relationships, which are strong with FOX and thin with BRIGHTCOVE (who have been running a single ABC pre-roll ad across their network for almost a month).
So, how long will the relationship last? Until FOX starts demanding a higher rev-share and BRIGHTCOVE’S margins diminish to be not much more than a CDN with a nice CMS interface?
All we can hope is that BRIGHTCOVE dedicates efforts across the long-tail of independent content, who (i) don’t have the advertising relationships and (ii) don’t do enough volume to warrant setting up independent CDN accounts. Which, if I’m not mistaken, was their original Mission (read 2005 blogs and interviews with Allaire)?
I’d give the relationship 12-months at the most. Then FOX will hire away engineers, out-source programming to Argentina and set up their own online network that is amortized over 7-years.