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Will Brightcove Price Itself Out of the Market?

Posted on Friday, October 13, 2006 at 10:04PM by Registered CommenterMichael Kolowich in , , | Comments10 Comments

I’ve posted several articles expressing my excitement about the emerging video channel management tools like Brightcove.  These tools are truly elegant — even in their beta releases — and portend a very exciting future for owners and publishers of video content.

brightcove.jpgThe good news is that Brightcove and others have allowed us to see the potential of their platforms by offering their services free of charge during 2006.  The pricing model, they say, is evolving…while holding their cards close to the vest.

Now, though, rumors have started quietly making the rounds about the fees that Brightcove might be planning to charge for non-advertising accounts, once the free trial is over at the end of this year. I certainly hope that what I’m hearing is not true.

The numbers I’ve seen suggest that the price of entry for a Brightcove account will be set very high — like five figures high per year…and that’s before you start talking about per-stream and per-gigabyte charges on top of the account maintenance fees.

I’m going to hope that these are just rumors or trial balloons being floated by the company, but I’ll use the occasion to state my hope that Brightcove will not price itself out of the market for anything but the big media companies and other high-volume content creators.

Many, many of my clients are interested in building Brightcove (or Brightcove-like) channels, but for relatively low-volume applications (measured in tens hundreds of viewings per day, not tens of thousands). But these are organizations — like medium-sized companies, colleges and independent schools, museums, and not-for-profit institutions — that will simply not be able to step up to annual hosting fees of $15,000 and up.

I understand that the gravy train of free service cannot go on forever. And I admire the strategy of getting hundreds upon hundreds of content providers invested in and hooked on Brightcove’s attractive channel design and reasonably easy content management infrastructure.

But I was hoping that Brightcove would fulfill its stated promise of “giving video content owners — from major studios and broadcasters…to WEB PUBLISHERS TO SMALL INDEPENDENT PRODUCERS” [emphasis mine] by keeping the entry barriers (in the form of the fixed-price monthly charges) fairly low.

There is a huge market out there of lower-volume content creators who are looking to have an attractive, efficient way of managing and presenting content. Brightcove must decide whether it will forego that market in favor of the business that comes in bigger chunks.

If the answer is that they only want to “fish for whales”, then that’s perfectly fine, strategically. But I think it’s important that they start telling the great majority of their trial clients NOW, before they get too invested.

Meanwhile, I’m putting the brakes on my recommendation that my clients start building Brightcove channels during the free trial period, until the pricing becomes more clear. There is no sense getting content creators hooked if they can’t afford to support the habit.  And in the meantime, I’m looking for alternatives to Brightcove, just in case.  Surely there will be someone who will emerge to fill the void between the big-media mentality of Brightcove and the wild-west, throw-copyrights-to-the-wind mentality of YouTube.

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Reader Comments (10)

Great Post!

It is good to see people writing about this transformation of media on the web.

I use Brightcove as a core compoenent of my video business. I called about getting an account setup, but the price was prohibitive, so I'm sacrificing control (i.e. they can insert ads) and hoping I don't get screwed and have to switch. So far, the experience working with Brightcove is fantastic. They have about the best solution of its kind on the market by far - but the spectre of mystery looms :)

What I really want to see is a low cost "pay per bandwidth" type of pricing system. I'm relatively low bandwidth, but I do want control - and I'm willing to pay a reasonable fee for that

I want the ability to insert and control my own ads - and track them
I want the ability to hand pick ads from "big name sponsors" and place them on my site (and generate money when my viewers watch).

I also want to see Brightcove improve their syndication model down to the "Title" level. Right now, you can only syndicate players... If you produce a cool segment that I want to include on my stream, why can't I subscribe to that and have easy e-commerce features built in that ensure that you - the content producer gets paid for your content - and vise versa? And taking that a step further, they should permit narrowcasters like me to select both 3rd party content, and 3rd party ads.. I should be able to search for ads, the same way I can search for syndication. For example, if I'm doing a high tech stream, let me pay a content provider a fee per view say X. Then let me hand pick ads for my audience (say a Microsoft Ad, or a MAC ad). Each time the ad gets played on my channel, the vendor should pay me Y. I should be able to insert ads from local vendors, or ads that I create for them too.. At the end of the day, my profit formula is this

My Profit =

+ fees I charge other syndicators for rights to my content (ecommerce enabled of course)
+ fees I charge for corporate video productions and ads I actually produce locally (optional)
+ fees I charge for banner ads and bumper ads from non-brightcove sponsors (example say a local company wants to sponsor my channel)

- bandwidth / usage / storage charges to brightcove
- transaction fees, ad placement and surcharge fees to brightcove
- syndication fees I pay to content providers whos programs that I include in my stream

If that happens, the world of video on the web will never be the same I think. It is a model that is a complete win win I think.

Chris

November 15, 2007 | Unregistered CommenterChris Meidell
If you are looking for a cost efficient alternative to Brightcove's control/pay model - Look no further. G13 Digital has developed a turnkey video solution putting all the control in the hands of the client without emptying their bank account on an annual basis.

G13 Digital services Include:
1. Interactive Flash Player
2. OnDemand Flash Encoding
3. Video CMS (Content Management System)
4. Simple Bandwidth / Store Bundles
5. HD Support
6. User Generated Content
7. Rating System

If you have been wanting enter into this space but feel a tremendous financial burden to enter, I would strongly recommend taking a look at their pricing and services to see if there is a fit.

Matt
April 11, 2008 | Unregistered CommenterMatt Murphy
A big problem I see with G13 and also Brightcove is the lack of design customization. They do have color a gradients editable but thats it.

My site has all thumbnail images with particular border colors and 4 pixel radius edges, and also i want to have the video thumbnails located below the main player and not to the right hand site. These type of design issues are just not available with G13 and Brightcove.

Video just like any other web element needs to able to be fully customizable and work with site designs, not just token edits.
July 4, 2008 | Unregistered CommenterStuart
Looks like things are changing. With the roll out of Brightcove 3, it looks as though Brightcove is in fact "shutting out small content producers". The free services are set to be deactived 12-17-08. I've put in a request to their sales department to see want the new rate structure will be. At first glance, the new Brightcove is a step backwards from what the already had. Everything seems a bit "watered down", with fewer player options. I'm curious to see how things progress. It may be time to find a suitable alternative.
November 4, 2008 | Unregistered CommenterIta
The basic is 6,00 per year, no ads to place, smaller videos 1-10 minutes, one terabyte of space, small traffic. Other prices are 10,000 - 20,000 a year depending of your traffic and videos, here you can place ads on your videos. Dec 17 is the deadline to upgrade to a paid account. They called me many times desperate to get me to upgrade and work on deals with me but still they want to get me 6,000 for the basic which sucks for me. 6,000 is not giving what I need and what I need, they want 10,000 or more which I can't afford. Any other alternatives like Brightcove out there? not youtube.
November 6, 2008 | Unregistered CommenterMixmasterbox
I meant 6,000 per year
November 6, 2008 | Unregistered CommenterMixmasterbox
Stuart is right. No more free Brightcove for those that can't afford their ridiculous pricing. I've used Brightcove for over a year now for my budding little business, and now I'll have to start looking elsewhere. I don't know where to go though, as it's a tad unprofessional to have YOUTUBE.COM watermarks all over your content.

Thanks to Brightcove for a year of bliss. And an even bigger No thanks to Brightcove for pulling the rug out from under us little guys.
November 12, 2008 | Unregistered CommenterDustin
How about Ooyala? What are your thoughts on their services? Anyone know their package rates?
November 14, 2008 | Unregistered CommenterNotsohappy
how about www.bitsontherun.com for video hosting?
November 16, 2008 | Unregistered Commenterkiwi
I spoke to Ooyala back last year and this was their plan at the time:

$0.08 (8 cents) per hour streamed per user
Includes all hosting, storage, encoding, transcoding, service fees and the like.

If you have lots of simultaneous streams this is where the per hour per user fee sticks it to you in your pocketbook. 100 concurrent stream would be $.80 for the hour, approximately $600 per month.

They are running with Amazon Web Services (AWS) for EC2 (elastic compute; virtualized servers), S3 (storage), as well as SQS (queue) services.
November 17, 2008 | Unregistered CommenterMark Bobsin

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