This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Brightcove Goes Mute on Competition

NEW YORK ( TheStreet -- Brightcove (BCOV - Get Report) may be a leader and pioneer in the field of on-demand video, but that only means the big guys will be actively trying to take your business.

The company is hoping to raise $55 million in an IPO expected to make its debut on Friday. It's looking to sell 5 million shares with pricing seen ranging from $10 to $12 each. The Cambridge, Mass.-based company does state in its filing that it expects significant competition, but doesn't name any names.

In its filing Brightcove states, "We will likely encounter significant, growing competition in our business from many sources, including portals and digital media retailers, search engines, social networking and consumer-sharing services companies, broadband media distribution platforms, technology suppliers, direct broadcast satellite television service companies and digital and traditional cable systems."

In plainer terms, they list every conceivable online method, but neglect to get into specific entities.

"I take that as a negative, because we know who the competitors are," said IPO Desktop President Francis Gaskins. Those rivals include Akamai Technology (AKAM - Get Report), which is its closest challenger. Google (GOOG) is also developing a product called Google Drive that is more consumer oriented.

Brightcove should be able to fight off the competition for a while though because of the stickiness of its contracts. The company usually signs clients to one-year deals and with the services that are provided, it makes it difficult for the customer to want to change.

For example, TheStreet (TST) currently uses Brightcove to deliver its video and was approached by Akamai. However a change would have incurred costs as well as hardware changes.

Plus, Brightcove offered a lowered rate, so there was no reason to incur the headaches of a change. Brightcove provides the video player, advertising services and storage for TheStreet with Akamai network in the background.

Brightcove increased its customer count by 185% in 2010 and 57% in 2011 as demand for online video has increased. In 2011, the average number of monthly streams was 743 million - a 56% increase over 2010.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
AKAM $71.29 0.00%
BCOV $7.40 0.00%
GOOG $548.34 0.00%
AAPL $123.25 0.00%
FB $83.30 0.00%


DOW 17,712.66 +34.43 0.19%
S&P 500 2,061.02 +4.87 0.24%
NASDAQ 4,891.2190 +27.8570 0.57%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs