Brightcove Sees Surge in Broadband Video on Newspaper Web Sites

In a posting on its corporate blog last week, broadband video publishing solutions provider, Brightcove--which claims to power broadband video for over 30 major newspaper publishers across North America, Europe and Asia (note: its US customers include Cox Newspapers, Freedom Communications, Hearst Communications, Media News Group, the New York Times Company and New York Times Regional Newspapers, Tribune Total Media and the Washington Post)--provided some figures on how its newspaper customers are deploying broadband video services and how customers are responding to those services.

According to the company, an in-house analysis of 187 newspaper Web sites showed that:
--Newspapers are producing more video: The number of videos uploaded by each newspaper into the Brightcove platform grew from an average of 186 videos per month in 2007 to an average of 638 videos per month in 2008, Brightcove says, and the total number of uploaded videos for the year grew by nearly 1500% in 2008.
--Newspapers are distributing more video on more Web pages: The number of Brightcove-powered video player loads on each newspaper Web site in Brightcove's sample jumped from an average of 169,093 per month in 2007 to an average of 964, 144 per month in 2008, the company says, and the total video player loads on newspaper Web sites grew by more than 700%.
--Consumers are watching more video on newspaper Web sites: Brightcove says that video streams from its newspaper customers are growing an average of over 35% quarter-over-quarter. Last quarter, the company says, its newspaper customers generated 42,777,231 video streams, compared to 15,311,542 for the year-ago quarter, and in 2008 it saw 365% growth in total video streams among those customers.
--Newspapers are monetizing video distribution: Brightcove says that nearly 100% of its newspaper customers have enabled advertising for their online video content. The dominant ad format is the 30-second pre-roll with a 300x250 companion banner, the company says, and an increasing number of its customers are partnering with third-party ad networks.

According to Brightcove, a number of factors are accelerating the growth of broadband video on newspaper Web sites: lower video production costs, coupled with higher-quality video delivery; the availability of platforms such as Brightcove's own, which render it unnecessary for newspapers to develop their own in-house solutions; the influx of ad dollars to the Web; and the ongoing migration of consumers from print to the Web. In addition, the company credits a number of "best practices and innovations" which it says have been particularly significant over the past year:
--Newspapers are producing more video in conjunction with their reporting, and consumers now expect to see a mix of media (text, images, audio, video) woven together in "almost every Web site experience." Therefore, videos are increasingly embedded in a wider range of editorial features on newspaper Web sites.
--In 2008, Brightcove launched a series of new technologies which it bills as allowing broadband video publishers to optimize Flash video for discovery through standard text-based search engines, and thus as driving more consumer traffic to Web pages with video players. It also says that its platform now allows newspapers to connect video experiences to other features on their Web sites, such as social media applications that help build community and drive traffic.
--An increasing number of newspapers are taking advantage of online video syndication capabilities that enable them to distribute promotional content to third-party Web sites, blogs, social networks and portals, in an effort to drive traffic back to their own Web sites and video players.

In other recent news from Brightcove:
--Last month, the company announced a series of major customer wins in Japan: Tokyo Broadcasting System, which is using the Brightcove platform, as part of a limited trial, to deliver ad-supported on-demand video to its online audience, including what Brightcove claims is "the first ever primetime timeshifted TV show in Japan"; Asahi Breweries Group, which is using the Brightcove platform to showcase online its library of TV commercials; Sony Music Network Japan, which is using the Brightcove platform to deliver video--including music videos, artist interviews, concert coverage and behind-the-scenes footage--across its network of artist and label Web sites; Shueisha Publishing, which is using the Brightcove platform to power webUOMO TV, a broadband video portal for its men's fashion and lifestyle magazine, UOMO; and Orange Page net, which is using the Brightcove platform to power a cooking/food channel called Kitchen TV. Brightcove launched a majority-owned subsidiary in Japan in 2008, with $4.9 million in new investment from Brightcove itself, and from Japanese partners Dentsu, J-Stream, transcosmos and CCI. The company was selected by Web TV distribution company, Presentcast, to power gorin.jp, the exclusive broadband video portal in Japan for coverage of the 2008 Olympics, and has also worked with Presentcast to launch a number of other broadband video offerings, including the World Snowboarding Championship's X-Trail JAM and the Inter-High School Football Championship.
--In February, the company announced an agreement with UK-based regional media business, Johnston Press (publishes local newspapers and Web sites), that it says will see it powering ad-supported video across the latter's 323 regional Web properties. Over the past two years, Brightcove says, Johnston Press has made a seven-figure investment in video equipment and training, in order to enable all its local properties to produce and publish video to accompany articles. Brightcove claims that its platform will allow Johnston Press to easily ingest video from all sources, including its readers, and will enable the company's properties to distribute and share content more easily, and allow for more flexibility and creativity in how they publish content, establish distribution policies and target advertising. "The Brightcove online video platform allows us far greater ease and flexibility in surfacing our vast video library and enabling our users to upload and share their own content," Lori Cunningham, digital strategy director at Johnston Press, said in a prepared statement. "Working with Brightcove will give our online communities more ways to contribute and digest content while adding value for our advertisers through a more diverse online inventory. This development is a critical step on our path to create a far richer and engaging experience for our consumers and advertisers."
--In January, the company announced that German sports portal, SPOX.com, has chosen its platform to power ad-supported broadband video across its Web properties, including exclusive programming from professional sports leagues such as the Champions League, the DFB Cup, Formula 1, the Premier League and the PGA. The programming is provided by German pay-TV operator, Premiere, which is an investor in SPOX. According to Brightcove, its platform's pre-integration with social media Web sites and applications was a major factor in SPOX's selection, as it will enable SPOX to increase distribution and audience size while growing its ad inventory beyond its own portal. "Implementing Brightcove across the SPOX network will help us continue to deliver on our mission of providing the most competent online platform to sports fans in Germany," SPOX CEO, Manuel Lopez, said in a prepared statement. "We have always been at the forefront of technology innovation and recognize the need for a high-quality and easy-to-use online video platform like Brightcove's. Our online reach is strong, but the Brightcove platform enables us to deepen our audience engagement with video content. The platform's easy integration with third-party ad networks has also provided us with a simple and effective way to sell advertising on our online video inventory." Brightcove, which opened an office in Hamburg last October, has secured deals with a number of other German media companies, including magazine publisher, Gruner + Jahr, and OMS, an online sales and marketing network for regional newspapers.
--In January, the company announced several additions to its senior management team and board of directors: 1) Jeff Whatcott, who was previously VP of marketing at Acquia, the commercial open source company behind Drupal, has been named SVP of marketing; his resume also includes stints in senior management at Adobe, Macromedia and Allaire Corporation (where he worked with Brightcove founder and CEO, Jeremy Allaire); 2) Mike Quinn, who was formerly SVP of sales for the Americas at FAST Search & Transfer (acquired by Microsoft in 2007), has been named SVP of sales for the Americas; his resume also includes senior management stints at Akamai and UUNet; and 3) longtime Adobe/Macromedia executive, David Mendels, and 4) former BrassRing CEO and Lotus Development EVP, Deb Besemer, have joined Brightcove's board. In addition, Brightcove's former SVP of marketing and strategy, Adam Berrey, has transitioned to its Strategic Advisory Board (note: the board's other members are Quantcast CMO, Adam Gerber; interactive journalism professor, Jeff Jarvis; AOL special advisor, Paul Vidich; and Tim Hanlon, EVP and managing director of Publicis Groupe's VivaKi Ventures).