Companies have broad aims for TV on the Web !!!

By BRIAN BERGSTEIN, AP Technology Writer
Mon Oct 30, 12:55 AM ET


CAMBRIDGE, Mass. - Eyebrows went up when Google Inc. recently agreed to spend $1.65 billion for YouTube, the most popular Web site for free video clips. But that figure could be blown away one day if some emerging companies achieve their much broader visions for the future of online TV.


These companies are building flexible online networks that can host content, serve up ads and dish out interactive features. While "viral" video-sharing sites like YouTube focus on individual clips — many pirated — these new Internet TV platforms are designed to host full-fledged channels that content creators can control.

One of the best positioned is Brightcove Inc., which on Monday is taking the wraps off an Internet video network that handles virtually everything for content creators.

Aiming to serve everyone from garage auteurs to major media companies, Brightcove offers free publishing tools and runs video wherever publishers want it.

That could be on the central Brightcove site, which is accessible through the video search functions at Google, Yahoo and AOL. Or content publishers can use Brightcove to run video on their own separate, branded sites. Or they can syndicate it to third-party Web sites, such as blogs or MySpace pages, where the content might run alongside user-generated material.

All those videos can be sold as paid downloads or streamed for free, with ads. Brightcove will sell ads and pool them among its customers, or it will plug in commercials that content creators sell themselves.

"They can launch a business in our system in a week," said Brightcove's founder and CEO, Jeremy Allaire, who formerly was chief technical officer at "Flash" graphics creator Macromedia Inc. before it was acquired by Adobe Systems Inc.

It's not a new idea that the abundant bandwidth of the Internet could become the delivery mechanism for thousands of TV channels — including new special-interest stations that would struggle to crack the cable or satellite lineup. We heard that pitch in the dot-com heyday.

But after a slow ramp-up, more than half of U.S. Internet subscribers now have broadband rather than dial-up. And the explosive growth of video-sharing sites, YouTube included, has helped convince advertisers that the medium has legs (though the term most commonly used is eyeballs).

These trends have helped Brightcove draw $28 million in funding from such companies as Time Warner Inc.'s AOL LLC, Hearst Corp., General Electric Co. and IAC/Interactive Corp. And Brightcove's flexibility has attracted diverse publishers trying to expand their broadband video presence. National Geographic, the Travel Channel, Warner Music, The New York Times and The Washington Post are all Brightcove customers.

So is Barrio 305, a Miami-based Internet-only channel devoted to the tropical hip-hop music flavor known as reggaeton. Brightcove pumps Barrio 305's videos to free sites in addition to Barrio 305's own pages. That gives the upstart network such wide dispersal that it hasn't mattered that Barrio 305 has yet to persuade any cable TV programming buyers to offer its package.

"We can bypass these traditional media agencies, and we can get out directly to our audience," said Antonio Otalvaro, one of the three brothers who founded Barrio 305. "Our primary audience is online. They're not watching TV."

Brightcove wins big praise from Forrester Research video analyst Josh Bernoff, who says Allaire "has really got it all figured out."

Even so, Brightcove is not alone in holding video publishers' hands as they step into the Internet.

NBC Universal recently launched an Internet video distribution system called NBBC (short for National Broadband Co.) that is working with NBC affiliates and even traditional NBC rivals such as CBS Corp. and News Corp. NBBC is a marketplace where content owners and third-party sites can agree to share content and ad revenue.

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