Tuesday, November 4, 2008

Brightcove to shut down free video, ad hosting service

By Mass High Tech Staff

Video Gallery

MHT Editor Doug Banks on NECN: How companies are using social media

NECN: Scvngr tours explore cities, campuses by cell phone

Video tech industry grows in NE: Brendan Lynch on NECN

Related News

Web video companies aim for user-friendly apps [July 3, 2008]

Twitter takes food orders, establishes brands [February 6, 2009]

Inside New York/New England connections: Mass.-N.Y. connection fosters new media funding, talent [January 9, 2009]

General Catalyst leads $5.5M funding of event ticket search engine [November 25, 2008]

Brightcove adds Condé Nast to customer tally [November 10, 2008]

According to a communication sent to customers last night, Cambridge-based online video company Brightcove Inc. will shutter its free, ad-supported hosting service, as well as its Brightcove.tv site in December.

The Brightcove Network, a free video hosting service and competitor to YouTube, and Brightcove.tv, an ad-supported distribution channel for both paying and free customers, will be officially shut down on December 17, according to the company.

The decision comes as Brightcove shifts its focus to its online video platform business, “which has proven to be very successful for both Brightcove and (its) publishers,” according to the company’s website.

Brightcove introduced the free service in 2006 as a way to help smaller publishers launch online video sites and gain access to advertising through a third party ad network. According to Adam Berrey, senior vice president of marketing and strategy at the company, the network attracted 44,000 users, but only a very small fraction was able to generate significant revenue. For the company, Brightcove Network revenues never amounted to more than 1 percent of the company’s total revenue, Berrey said via email,

During the same period, the platform product has attracted “hundreds of customers” and revenue grew by five times in 2007 and is expected to grow by three times again in 2008.

Brightcove recently launched Brightcove 3, the latest version of its video publishing platform, which boasts a number of media customers, including HBO, The Wall Street Journal, The Discovery Channel, About.com and the New York Times. Users of the discontinued Brightcove Network will be offered a free, trial upgrade to Brightcove 3.