Smoke And Mirrors

There seems to be a metric out there that no one has captured that has a huge implication for the financial markets. Let's call it the 'Brightcove Premium'. It's a metric that a company is not valued relative to any financial or even commercial metrics. Rather, they are valued as a factor of their media coverage and profile.

In Google's latest filings, it has been revealed that they paid 100x revenues for YouTube.

Companies like Roo are valued by the market at around 12 x revenues.

And poor old Narrowstep is at barely 5 x revenues.

This evaluation is based not on technology, people, experience, customers, potential or any other factor other than the hype factor. Jeremy Allaire and the nice new guys from Bablegum and Joost clearly spend more money on PR than Roo, who in turn vastly outspend Narrowstep on media relations.

So, the choice is clear.. put your money into technology and customer service if you're dumb, or put it into PR companies if you're clever.

The spin machine goes on and on.