Saturday, March 05, 2011

Will Google Take Out Brightcove ?

I had a very interesting exchange with the head of a major UK syndicated video business this week. He revealed that they have moved all of their business from Brightcove to YouTube.

This bodes badly for those of us in the enterprise video platform market, or indeed anyone trying to make money from video.

For the person I was talking to, I suspect they have sold their soul to the devil and will have both devalued their business and walked into a trap. But online video is a tough business and who can resist a man offering shinny new roubles ?

What this does, though, is present a serious issue for companies like Oolaya and Brightcove, who have to compete with free.

The online video business is a hugely inefficient marketplace, with many VCs slugging it out with Google now, which is great for service providers, but bad for the sustainability of the market.

What is clear is that Google is more likely to take Brightcove out of business than buy it..