Thursday, March 5, 2009

Brightcove

What are the strengths and weaknesses of Brightcove’s business model?

The main strength of Brightcove business model was their extensive platform and cost structure. The platform made it easy for their customers to build and distribute video faster and cheaper. Furthermore, it came equipped with tools that allowed the publishers to manage, track, and customize options, usage and content rights. The cost structure was a major selling point for Brightcove because they were only charge when their content was actually viewed and not a single fee service. The main weakness of Brightcove’s business model is their lack of focus. I think by trying to cater to the publishers, advertisers, affiliates, and consumers; Brightcove took too long to develop their platform and service allowing other competitors, like YouTube, to step in and take the first mover advantage. Furthermore, this broad focus put a strain on financial resources and delayed the starting date of platform. For these reasons, Brightcove lost their first mover advantage and fell behind in the internet TV industry.

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