Brightcove Stock

Brightcove Inc. (Brightcove) is a global leader in cloud-based streaming technology and services.

Brightcove's software platform and suite of solutions include a breadth and depth of offerings that meet the needs of media and enterprise customers in a variety of industries across the globe with their use of streaming video, and serve as a guide in optimizing and maturing their streaming strategies.

With deep industry expertise and an understanding of how streaming video helps generate positive business outcomes, the company's proven platform combines functionality designed to meet the needs and goals of its customers with the additional flexibility for customers to customize solutions to meet their own unique requirements

As of December 31, 2023, the company had 2,559 customers in over 60 countries, including many of the world's leading media companies, broadcasters, digital publishers, sports and entertainment companies, fashion and hospitality brands, faith-based institutions, retail and e-commerce businesses, and technology organizations, as well as government agencies, educational institutions and non-profit organizations.

The company primarily generates revenue by offering its solutions to customers on a subscription-based, software as a service (SaaS) model. Substantially all of the company's revenue has historically been attributable to Brightcove Video Cloud (Video Cloud), which is its core video streaming platform, and it expects that revenue from itssolutions leveraging Video Cloud will continue to comprise a significant portion of its revenue.

The Brightcove Approach

The company distills its approach into the following focus areas:

Commitment to Innovation and Customer Success: The company continually invests in research and development to deliver cutting-edge technology, improve its platform and expand the use-cases it covers for customers. By staying at the forefront of the ever-evolving streaming industry, the company empowers its customers to effectively engage their target audiences with streaming technology and services to achieve their business goals. This commitment is evidenced by Brightcove receiving, in 2023, the company's tenth Support Staff Excellence award from the Technology & Services Industry Association. As it looks toward the future, the company's focus is on driving innovation and exceeding customer expectations while increasing its own business model flexibility and revenue opportunities.

Go-To-Market Strategy: The company continues to focus on serving its existing customer base and market, while expanding its array of dedicated resources serving customers at the higher end of the market.

Media Focus: The company's legacy of serving leading media companies and its commitment to technology innovation to serve the changing market have resulted in Brightcove services that allow media companies to monetize their content through a variety of strategies. These include, but are not limited to, subscription video on demand (SVOD), transactional video on demand (TVOD), advertising-based video on demand (AVOD), and similar models supporting the delivery of live content, such as sports, news, and events, and simulated live experiences, such as free ad-supported streaming (FAST) channels, as well as hybrid models. The company's commitment to helping media companies achieve their objectives is also shown through some of its newer, additional offerings, such as:

Engagement Insights, which analyzes billions of viewer interactions to identify meaningful engagement drivers. The company's customers can pinpoint the most effective ways to reach new viewers, drive audience engagement, and retain viewers. Leveraging advanced algorithms trained by artificial intelligence (AI), and integrations with leading marketing automation platforms (MAP) and customer relationship management (CRM) platforms, the company's customers are able to correlate content performance with viewing patterns to build audience segments. The company's customers can then tailor their outreach to retain their viewers and maximize the value of their content; Ad Insights, which measures the impact of ad intensity on viewer engagement, providing detailed reporting on viewer tolerance for ads across dimensions, such as player, device, region, and content, and how more frequent or longer duration ad pods are impacting audience engagement. These insights drive optimizations to help its customers maximize ad yields, and works seamlessly with the company's own Ad Monetization service or any third party ad networks;

Cloud Playout and FAST channels, which allow Brightcove customers to launch FAST channels and manage content, programming, and monetization from the Brightcove platform;

Quality of Experience (QoE) Insights, which delivers integrated collection and analysis of critical metrics, at scale, as they change over time. QoE Insights uses an advanced algorithm trained by AI to identify impaired video experiences, help pinpoint root causes, measure the impacts on viewer sessions and draw correlations to audience engagement and long-term viewer satisfaction; and

Context Aware Encoding (CAE), which is a component within Brightcove's Zencoder encoding and transcoding product, that uses AI to reduce the cost of storing and streaming video while improving playback quality for viewers.

Enterprise Focus: The company's commitment to serving its enterprise customers has resulted in new, use-case-based offerings that deliver bespoke capabilities built on its Video Cloud platform, which are designed to help companies leverage video to reach and engage their external and internal audiences, respectively, and drive specific outcomes. The company also continues to enhance its offerings and accelerate the breadth of its solutions through integrations that extend the application of video across the enterprise technology ecosystem. Recent examples of this enterprise-focus include:

Brightcove Marketing Studio, which is designed to help marketers extend their video strategy by complementing it with their own marketing technology (martech) investments. With Marketing Studio, the company's customers can not only manage and publish their video using Brightcove functionality, but can also incorporate their Brightcove-hosted video directly into their martech solution to streamline their processes and expand the reach of their video. For example, customers using Shopify can incorporate video from Brightcove into their e-commerce sites; and customers using Sprnklr and/or Hootsuite can publish video content managed within the Brightcove platform to relevant social media properties. Customers can also connect their MAP or CRM solutions to Brightcove to sync video engagement analytics to allow them to create targeted outbound marketing campaigns.

Brightcove Communications Studio, which provides marketers and corporate communications professionals with a suite of tools to better engage and communicate with their audiences by streaming video through live and on-demand experiences. Communications Studio also makes it easy for professionals to source, review, and approve for publication, employee-generated content from teams across the company by automatically ingesting content from Google Drive or Dropbox folders. The company's customers can also use Brightcove's Gallery offering to provide audiences a modern live or on-demand streaming video experience while tracking viewer engagement with analytics, insights, and interactive elements.

Enhancements to Brightcove's analytics and insights module enables marketers and corporate communications professionals to measure the impact of their streaming video and iterate based on data. The company's Essential Insights module enables its customers to gather reporting on usage and content trends across their video library; and Brightcove Interactivity and its analytics capabilities highlight engagement with elements like polls, quizzes, sentiment, and more and provide data on audience engagement and feedback.

Platform, Solutions, Products and Services

The company creates technology that helps its customers use streaming video to further their businesses in meaningful ways. The company has a core video streaming platform, Video Cloud, and several solutions and products that address particular customer use-cases. The company also has a host of additional services which enable Brightcove customers to generate specific outcomes and create their own customized implementations.

Platform - Brightcove Video Cloud

Brightcove Video Cloud is the world's leading online video streaming platform. It enables the company's customers to publish, deliver and distribute video to Internet-connected devices quickly, easily and in a cost-effective and high-quality manner. The company's innovative technology and intuitive user interface give customers control over a wide range of features and functionality needed to publish and deliver a compelling user experience, including the ability to:

upload videos in various formats for adaptive AI encoding solutions, which maximizes quality and minimizes file size, and deliver videos to myriad operating systems, including web-based experiences, smartphones, tablets, media streaming devices and connected TVs;

organize, enhance, and manage their media library by adding in metadata, creating playlists, using AI to enhance content with automated transcription in over 25 languages, and setting rules to define where and when videos can be viewed;

rely on fast load times, fast video starts, and easily-configured players, which include built-in support for advertising, analytics and content protection, and provide a consistent cross-platform playback experience;

broadcast live video with multiple live streams at different quality levels and renditions that best match each viewer's available bandwidth, processor utilization and player size;

expand audience reach by leveraging the social network of their viewers, including sharing complete videos or video clips through Facebook, Instagram, Pinterest, YouTube, Twitter (X), LinkedIn, Hootsuite, and other social destinations;

grow and monetize their audience with video ad features such as tools for ad insertions and built-in ad server and network integrations;

optimize and support online video publishing and distribution strategy through video analytics, which aggregate analytics from owned and operated platforms and distribution platforms, and transform them into insights that drive actionable results using its advanced AI-trained algorithms;

customize, extend and integrate with its platform through playback, APIs and SDKs to myriad platforms including iOS, tvOS, Android and AndroidTV, Amazon Fire TV, Roku, Samsung, LG, and beyond; and

securely stream corporate live and on-demand video communications to audiences on a multitude of devices.

Solutions and Products

With its ongoing customer-driven development, and informed by the market trends, the company invests in solutions and products to meet the streaming use cases representative of the industries it serves, including:

Brightcove Marketing Studio, is the streaming video solution designed to accelerate business growth by bridging teams and technology to deliver premium viewing experiences, increase conversions and drive measurable marketing outcomes by increasing brand awareness, engagement and conversion across all aspects of the customer or audience journey;

Brightcove Communications Studio, is for marketers and corporate communications professionals who need tools to deliver information in an engaging, secure and scalable manner through live and on-demand content. The company's communications solution combines the power of enterprise-leading streaming technology with the interactivity and data capabilities that modern organizations need to get the most out of their content. With this solution, teams can be confident that audiences understand and engage with their content while tracking that engagement to do more of what is effective;

Brightcove Media Studio, is a comprehensive solution for over-the-top (OTT) video services, media publishers and leading broadcasters looking to monetize their media, live stream at scale and nurture their audience lifecycle. Leveraging programmatic content ingestion, live and VOD workflows, integrated cloud-based encoding, cost-optimized distribution across all devices and platforms, and flexible monetization models such as SVOD, TVOD, AVOD and hybrid, including similar monetization models supporting live content, Brightcove's end-to-end OTT streaming video platform and modular architecture makes it easy to quickly integrate, onboard and deploy beautiful experiences that engage audiences;

Brightcove Audience Insights, is a customer data platform specifically designed for video streaming businesses. With Brightcove Audience Insights the company's customers have a unified view into their viewers and subscribers with various out-of-the-box reporting and insights to better understand their viewers' and subscribers' engagement. Brightcove Audience Insights makes it easy for its customers to take action on their video data by using audience segment functionality to improve acquisition and service engagement, and reduce churn;

Zencoder is a cloud-based video encoding service, providing extremely fast, high-quality, and reliable encoding of live and on-demand video and access to highly scalable encoding power without the expense, management, and scalability limitations of traditional hardware and software. Customers are able to integrate Zencoder with a simple API, and manage accounts and encoding jobs from an intuitive online dashboard. Zencoder accepts files in an extensive range of formats and codecs, supports video output to a multitude of devices, and includes tools to support high-quality video output and to adjust and edit video. It is globally distributed and includes advanced security features; and

Brightcove Beacon, is a purpose-built app platform that enables the company's customers to launch premium OTT video streaming experiences quickly and cost-effectively across mobile, web, smart TVs and connected TVs, with the flexibility of multiple monetization models. It allows customers to curate and deliver content to their audience segments, automate the curation of playlists and carousels, securely store and deliver content with DRM protection, automate content availability windows, and configure VOD and live content offerings for any demographic changes that occur throughout the day or week. Customers can also manage viewers with a frictionless viewer registration experience, and offer viewer profiles to maintain watch history and preferences and manage stream concurrency and account sharing. Through Brightcove Beacon, customers can also gather insights on viewer behavior to inform their decisions about programming, layout, and monetization.

Services to support Brightcove customers

Ad Monetization: Brightcove Ad Monetization is the company's monetization service for organizations that want to generate revenue with an advertising strategy. Using the latest yield optimization tools, it supports both live and on-demand monetization through strategic integrations, industry expertise, and insights that combine both player and ad data. For all VOD, live and FAST content, the flexibility of its Ad Monetization supports organizations throughout their advertising initiatives whether they have Brightcove take on full stack of inventory or are interested in having it supplement unsold inventory.

Professional Services: While its products are easy for customers to use and deploy without any additional specialized services, the company offers a range of professional services for customers who seek customization of its products, need assistance with their implementations, require assistance with the integration of its products with in-house or third-party applications, or need managed services where it would operate streaming technology and/or content operations on their behalf. These professional services are priced on a retainer, time and materials, or a per project basis and include projects such as content migrations from other vendors or in-house solutions, video player enhancements, mobile and connected TV app development, the creation of web pages optimized for streaming, and customization of virtual event experiences.

Brightcove Marketplace: The Brightcove Marketplace features several dozen integrations to leading technology providers that support the myriad use cases of the company's customers and prospects. The company's teams continuously explore new integration opportunities to ensure its customers have access to the latest technology tools that help them maximize their use of the Brightcove platform by connecting it across the tools and systems they use to run their businesses.

Customer Success, Support, and Documentation: The company's customer success and customer support teams are involved from the very beginning of a customer's journey with Brightcove, leveraging its teams' global presence to engage with customers through multiple touchpoints and develop close customer relationships that have led to best-in-class CSAT scores. The company's dedicated customer success team offers customized onboarding and related services to new and existing customers to help with technology setup and adoption, and maximizing the value of its products and services to help customers reach their business goals. This team focuses on ongoing customer success with its platform as well as maintaining consistent, positive engagement.

Customer support from the company's TSIA-certified team is included for all of its products, and provides customers access to its support team via a web portal. Customers who upgrade to premium editions of its support packages gain additional features such as faster response times, access to a dedicated Customer Success representative, additional contact options, dedicated live event support, live channel monitoring, and 24x7x365 support.

Customers also have access to the company's library of support documentation spanning its entire portfolio of products, which is updated regularly in connection with feature enhancements, new releases, and other product updates.

Training: The company offers free basic online training to registered users of its products. The company also offers customized, onsite training for customers that is priced on a per engagement basis.

Video.js and Developer Solutions: Brightcove is the corporate shepherd of the Video.js community. Video.js has been a staple of the open-source video player technology space and has seen substantial adoption across hundreds of thousands of websites and tens of thousands of organizations spanning the globe. With numerous APIs, SDKs and a robust ecosystem of open-source plugins, developers can customize Video.js players to deliver the multi-platform stability and customizability that companies and their developers rely on.

Editions

The company's products are generally offered to customers on a subscription-based SaaS model, with varying levels of usage entitlements, support and functionality that depend on the business use case of its customers. The company's customers generally pay it a monthly or annual subscription fee for access to its products. This model allows the company's customers to scale their level of investment and usage based on the size and complexity of their needs.

The company's Video Cloud Express edition, which targets small and medium-sized businesses (SMBs) and its Zencoder customers on month-to-month contracts or pay-as-you-go contracts, are considered volume customers. All other customers are considered premium customers.

Sales and Marketing

The company sells its products and services primarily through its global direct sales organization. The company's sales team is organized by the following geographic regions: Americas, Europe, the Asia Pacific, and Japan. In the Middle East and India, the company generates sales primarily through partner channels. The company further organizes its go-to-market approach by focusing its sales and marketing teams on selling to organizations in a wide range of industries: Enterprise organizations who use video to sell their products and services and/or engage with their employees and other stakeholders, and Media organizations who use the company's platform and solutions to monetize their content.

The company also generates sales through a comprehensive channel partner program that includes: referral partners, solution partners, managed service providers, and resellers. The company's ability to grow and maintain a global, diverse set of quality channel partners extends its market reach, which allows it to meet the specific nuances of local markets around the world.

Additionally, the company sells some of its Zencoder products online through its website.

The company generates customer leads, accelerate sales opportunities and build brand awareness through its marketing programs. The company's marketing programs target executives, technology professionals and senior business leaders. The company's marketing programs typically target specific geographies and industry segments. The company's principal marketing programs include:

public relations and social media;

online event marketing activities, direct email, search engine marketing and display ads and blogs;

field marketing events for customers and prospects;

participation in, and sponsorship of, user conferences, trade shows and industry events;

use of the company's website to provide product and organization information, as well as learning opportunities for potential customers;

cooperative marketing efforts with partners, including joint press announcements, joint trade show activities, channel marketing campaigns and joint seminars;

telemarketing and lead generation representatives who respond to incoming leads to convert them into new sales opportunities; and

customer programs, including user meetings and the company's online customer community.

Operations

The company has relationships with a number of third-party cloud computing platforms to assist in providing its products and services to customers. The company uses AWS and other third-party platforms to provide cloud-based computing and storage services to its customers.

Media delivery to end users, including video, audio, images and JavaScript components, is served primarily through content delivery network (CDN) providers, including Akamai, Fastly, and AWS Cloudfront. The company's agreements with its CDN providers are based on competitive market terms and conditions, including service level commitments from these CDN providers.

Intellectual Property

In the United States, the company has 60 issued and/or allowed patents and 2 patent applications pending. Internationally, the company has 56 issued and/or allowed patents and it is pursuing 18 patent applications, including one patent application undergoing examination at the European Patent Office. The company also has a number of registered trademarks in the United States and certain non-U.S. jurisdictions, such as BRIGHTCOVE, ZENCODER, and its logo.

Government Regulations

The company is a global company based in the U.S., and is therefore subject to foreign laws governing its foreign operations, as well as the U.S. laws that restrict trade and certain practices, such as the Foreign Corrupt Practices Act. The company is also subject to domestic and foreign laws that affect companies conducting business on the internet, including laws relating to the liability of providers of online services.

In the U.S., the company relies on laws that limit the liability of online providers for third-party content, including the Digital Millennium Copyright Act of 1998 (DMCA) and Section 230 of the Communications Decency Act of 1996. Countries outside the U.S. generally do not provide protections that are as robust as those under the DMCA and Section 230.

As a result, the company is subject to laws and regulations governing privacy and data security in the U.S. and worldwide, such as Section 5 of the Federal Trade Commission Act, the EU's General Data Protection Law (EU GDPR), the UK General Data Protection Law (UK GDPR), the California Consumer Privacy Act (CCPA), as amended, and other state privacy laws.

History

Brightcove Inc. was founded in 2004. The company was incorporated in Delaware in 2004.