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Brightcove Management Discusses Q2 2012 Results - Earnings Call Transcript

The increasing ubiquity of smartphones and tablets, along with expectations of future rapid growth and the adoption of Internet-connected Smart TV platforms makes delivering digital content quickly and seamlessly but more important and more complex. Being able to reach audiences wherever and however they are choosing to interact with digital content is no longer a nice-to-have, it's a must-have, and media companies and marketers have a choice: Will they attempt to solve this problem themselves and spend more and more time and resources on a technology problem that's outside of their core competency? Or will they turn to third-party cloud content service providers with significant scale that can help them to stay ahead of the rapidly changing technology landscape?

We believe our value proposition is compelling, and that businesses and organizations from nearly every sector of industry and society are now turning to third parties to help them manage their digital content needs. We are at the early stages of this market, and our focus is to build on our market-leading position by driving greater innovation and faster time to value.

Consistent with this focus, we're excited to announce the signing of the definitive agreement to acquire Zencoder, a leading provider of cloud-based video encoding services and free HTML video player technology. Zencoder has more than 1,000 paying customers for their encoding services, ranging from individual developers and small businesses, to larger global brands such as PBS, IGN, SmugMug, Yammer, TwitVid, College Humor, Ooyala, and Funny or Die. According to [ph], a third-party web technology adoption reporting firm, Zencoder's Video.js HTML5 video player is used on over 24,000 websites by organizations across many industries, including Montblanc, Dolce & Gabbana, Diesel, Illy, Applebee's, Mattel, Kellogg's, Les Echos, the U.S. Navy, Aetna, Transamerica, Washington State University and many, many others.

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