It's been a year since I joined Brightcove in December of 2008. I have come to appreciate and understand online video technology and online video strategies at a much deeper level that I ever did during my many years at Macromedia and Adobe. In looking back, I can see the emergence of several key trends that are shaping the market in 2010.
It seems that the TV industry in the United States is reaching a tentative consensus about how to bring more premium content online in a manner that does not overly destabilize current business models. By bringing your rights as a cable or satellite television subscriber with you into the online world, you are going to be able to consume more television content online than ever before. There are many unanswered questions, many competing agendas, and lots of ways for this initiative to fail to live up to its full potential, but it is an interesting and important step toward the future of online video. At Brightcove, we are working very closely with our television industry customers to help them thrive in this new world.
I recently returned from Japan and as is always the case, I came away inspired by seeing what is possible when high-speed connectivity and intelligent devices become ubiquitous. As Mary Meeker of Morgan Stanley has described in unbelievably comprehensive detail, mobile is a massive transformation in computing and video is going to be a huge part of it. At Brightcove, we are really gearing up for this transformation and we foresee incredible adoption across all of our customers in all segments in 2010.
We are seeing significant and increased interest in live video streaming among customers across many industries. In most cases, it's not about broadcasting at all. It is about narrowcasting special-interest events to specific audiences, often with less than 1000 simultaneous viewers. Of course, there are a few mega-events out there that get lots of attention, but in general, it's the smaller events where the real action is. It is early days, but customers are earnestly exploring these new possibilities, and it is a significant area of investment for us.
Video Sharing Refugees
We have seen significant and increasing inquiries from customers who originally assumed that YouTube and other video sharing would solve all of their online video needs. These customers are now discovering that there are many features that they can't get from these solutions: videos longer than 10 minutes, player customization, security options, granular content management capabilities, advertising control, etc. These customers are discovering that they need a distribution strategy that combines both video sharing sites like YouTube and video delivered on their own sites using a professional grade online video platform. Demand from these "video sharing refugees" is what is driving the incredible initial success we have seen with our Express product line.
Together, these four trends are helping us to prioritize our product investments and our go to market strategy in the year ahead.