AOL and Brightcove Strike Video Deal

Nov 28, 2005  •  Post A Comment

AOL struck a deal with nascent Internet TV platform Brightcove last week to distribute video from Brightcove’s content partners on the AOL network of sites reaching 119 million unique visitors each month. The deal becomes effective next year.

AOL is also one of the lead investors in Brightcove’s just-completed second round of fundraising, which collected $16.2 million, along with Barry Diller’s IAC/InterActiveCorp, Brightcove said. Mr. Diller will now hold a spot on the Brightcove board of directors. Other investors include Hearst and Allen & Co.

The distribution deal gives AOL more content from small and medium-size content companies as well as from independent producers to add to its stable of programming from high-profile providers such as Warner Bros. AOL will sell ads in the Brightcove content it delivers. “Brightcove gets us unique hard-to-find programming that there is an appetite for,” said Nicholas Graham, a spokesman for AOL.

The Brightcove service is up and running in an invitation-only commercial preview and will become generally available in early 2006. But the company will face competition as a content syndicator from Broadband Enterprises, which sells advertising across a network of 400 Web sites. CEO Matt Wasserlauf said Broadband Enterprises plans to introduce originally produced content in the coming weeks and will also grow to include 1,000 Web sites in its network next year.

Mr. Wasserlauf also said the company expects to increase revenues from more than $5 million this year to $20 million next year and increase unique monthly users from 15 million to 25 million.