Today's feature article in paidContent.org is an extensive interview between Rafat Ali and Jeremy Allaire. The interview covers a lot of ground including Brightcove's investment strategy, changing dynamics in the Internet video market, and perspectives on a wide variety of businesses in the space, as well as Brightcove product initiatives.
Here are some excerpts from the interview transcript. You can access the full audio interview below.
"As we looked at the marketplace in 2005 and into early 2006, we decided to take what I would call a portfolio approach to experimenting in the market and I think that’s what entrepreneurs do. They take risks. They make multiple bets and they figure out what works. The great entrepreneurs ultimately find the things that work really well and double down on those and grow those...
"When we looked at the marketplace in the middle of the year we looked at the next 18 to 24 months where could be confident that we were going to be in a dominant position. From our board’s perspective, from my perspective, we didn’t want to be invested in businesses where we would be number 5 or number 10 or even number 3 or number 4. So, we looked very closely at those and while the consumer facing product grew a lot—I think comScore (NSDQ: SCOR) has 8 million unique in August—just on a relative basis, it was not at a scale where we felt confident that that was going to be a product line that we’d be dominant in.
"I think the other issue was that it created conflict to situation with the media companies that we work with. “Why are you building a consumer facing product? That’s our business.” So, we eliminated the conflict and ensuring that 100 percent of our investments are on a platform just made a lot of sense. That business has done incredibly well starting 2007. We’re growing an enormous amount on the revenue side. On the user side, we’re now hundreds and millions of streams a month. We have 4000 commercial publishers that operate with us, hundreds of major brands going worldwide and our platform reaches about 120 million unique users a month. That’s 120 million users that access these Brightcove-based media experiences through over 10,000 sites. As an entrepreneur you double down on the things that are doing incredibly well and you diminish the things that you’re not confident are going to be huge...
"Interestingly, what we have seen happen over the last year is the requirements for running an actual online video business or using online video as a core part of their business have just gotten more complex, not less complex. For example, there are all of the things that go around managing editorial and managing programming and managing rights and all the things that are associated with that become key pieces. On the user experience side, I think people are investing in not just having a player with content, but they’re looking at how do they deeply integrate that programming throughout their sites, how do they do that in automated ways, how do they leverage recommendations and social recommendations to drive that. I think we’re also right on the cusp of pretty big breakthrough in terms of quality of experience and so this is an area we’re putting a lot of attention right now."
Click here to read the full article at paidContent.org and you can access the full audio interview below.