I think the move to internet television is one of the most interesting things currently going on with the technology industry. We already touched on many of the issues in the Netflix case, so there is no need to restate all the issues again. I think Brightcove is in a good position to take advantage of this market, as they have already become established and developed the relationships needed to be successful. Competitors face a difficult task as Brightcove has formed alliances with customers at the upper end of the market, whereas Google, YouTube, and other competitors have not. Brightcove has taken advantage of the first mover approach in this respect and it should pay off for them in the long run.
The end of the case presents some questions for how Brightcove should move forward. I think it is an absolute necessity that it continue to develop the features that are valued by the consumer. I believe that it will be the company offering the most diverse amount of video to the customer that will be successful in the end. Brightcove should focus largely on building its network through heavy marketing to increase its user base. The value of the site will increase as more people use it, hopefully to a point where switching to a competitor will be too high of a cost to the consumer. Whether Brightcove decides to build or buy this platform is a hard decision to make. By building the network, it will have control over all aspects and features of the site. However, buying pieces could be cheaper and would allow them to develop the network more quickly, rather than having to wait for development.
I do not think it would be a good thing for Brightcove to expand internationally at this point in time. The internet television market is still being developed, and there are many variables that have yet to be worked out. I'm also not sure how well the European and Asian markets would adapt to this type of technology. While opportunities may present themselves, the case does not offer much information regarding the risks and potential that is available for these new markets. Just because one thing works well in the US doesn't mean that it is going to work well in other countries. If Brightcove understands the international customer and is willing to modify its business plan to accommodate differences, then there may be some profit that can be made from an international expansion. I just think the market is not quite established enough and Brightcove still has has to build-up certain parts of its company. Money would be better spent on the company, rather than expansion, at this point in time.
Saturday, March 20, 2010
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I completely agree that the only way they will succeed is to build their customer base. I agree that they have a lot of high end users now, but not enough "average" users. I am not sure they will be able to compete with Youtube.
ReplyDeleteI also agree with your assessment that Brightcove should not focus its attention (at this time) to expanding internationally. The company should focus on strengthening its platform and building its network capabilities.
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