brightcove award write up

2016 Global Online Video PlatformsMarket Leadership Award

2016

BEST PRACTICES RESEARCH

© Frost & Sullivan 2016 2 “We Accelerate Growth”

Contents

Background and Company Performance ........................................................................ 3

Industry Challenges .............................................................................................. 3

Market Leadership of Brightcove .................................................................................. 3

Key Performance Criteria ............................................................................................ 8

The Intersection between 360-Degree Research and Best Practices Awards ....................... 9

Best Practices Recognition: 10 Steps to Researching, Identifying, and Recognizing Best Practices ................................................................................................................. 10

About Frost & Sullivan .............................................................................................. 11



Background and Company Performance Industry Challenges

As consumers’ eyes shift from paper to screen, multiple digital formats deliver content

faster and faster. The increased penetration of broadband, the connected devices

explosion, and the rising consumer appetite for content anytime, anywhere, on any

device, drives over-the-top and TV Everywhere (TVE) strategies across the world—

breeding a promising world for online video platform (OVP) providers.

Frost & Sullivan defines OVPs as fee-based software-as-a-service (SaaS) online content

solutions that enable video content owners to ingest, transcode, store, manage, protect,

publish, syndicate, track, and monetize online video. With about 80 OVP vendors across

the globe and growing, Frost & Sullivan predicts the OVP market to almost triple revenue

from $574.5 million in 2015 to $1.6 billion in 2021, a compound annual growth rate of

18.8%.

With these promising trends and growth numbers, the OVP market looks quite promising,

as long as vendors can meet the following challenges:

Perfecting video consumers’ experience with top-of-the-line software and platforms

Mitigating risk about uncertain return on investment (ROI) and online content

business models that make companies reluctant to invest in TVE

Increasing market awareness and acknowledged best practices with the changing

technology of online videos

Market Leadership of Brightcove Approximately 12 years ago, Brightcove helped create the original OVP space based on

the vision that video would become the principal online communication medium. Frost &

Sullivan ongoing analysis confirms that the company maintains its leadership position in

the OVP market - capturing approximately 23% of market share. The company powers

some of the world’s largest publishers, enterprises, networks, broadcasters, and digital

media companies. Brightcove’s global presence includes nearly 5,000 customers across 75

countries.

Product Differentiation, Quality, and Technology Leverage

Brightcove prides itself on its one-stop-shop video solution for its two customer bases:

media companies and enterprises. Its range of solutions includes basic transcoding into

key formats, fully featured video players, interactive content elements, video analytics,

and advertising and monetizing capabilities for media, digital marketers, and enterprises.

The company focuses on building solutions that do not require much IT department help

for marketers, but instead are simple and easy to use.



Video Cloud Platform

The main platform, Video Cloud, is cloud-based for SaaS infrastructure flexibility to any

customer in the world. End-consumers view video on a range of devices, from

smartphones and tablets to PCs and connected TVs, and Brightcove’s Video Cloud

simplifies the video delivery to every device and destination the end consumer uses. The

newest update to Video Cloud features faster upload and playback time, a high-

performance, Flash-free HTML5 player, rich application programming interfaces, custom

analytics, and a bright new user interface for this top-of-the-line video platform software.

Furthermore, Video Cloud supports high-definition live streaming on all devices for quicker

engagement of audiences in real-time. Live digital video recording enables audiences to

pause and rewind to favorite parts of a stream, so the company’s message is fully

received in the consumer world.

Video Marketing Suite

Recognizing certain needs in enterprise marketing tactics and the tremendous growth of

video for digital marketing keeps Brightcove ahead of the other providers in the OVP

market. With the Brightcove Video Marketing Suite (Suite), marketers harness the power

of video to drive awareness, engagement, and conversion from consumers. Video Cloud

and Video Cloud Live, Gallery, and Audience for marketing software integrations with

powerhouse providers - such as Eloqua, Marketo, and Salesforce.com - power the Suite to

enhance customers’ video marketing strategies and ROI.

Once and Lift

Used by the world’s largest video publishers, Brightcove’s Once pulls together all

components of video, audio, and image media and delivers seamless server-side

advertisement insertion (SSAI). With SSAI, companies insert advertisements in any part

of the video stream for better monetization, delivering a TV-like experience to viewers.

Engagement is not affected by ad blockers. Furthermore, Brightcove Lift combines the

capabilities of Once with the Brightcove Player and native software development kits

(SDKs), allowing customers to get to market quickly and to benefit from Brightcove's

investments in high performance player technology.

Modular Architecture

For customers with existing video technology investments, Brightcove makes many

components of its platform available as modular products. Offerings include industry-

leading Zencoder, a cloud-based live and file encoding solution, and Perform, which

includes the Brightcove web player and native application SDKs. By harnessing all

products or picking and choosing the best solution, Brightcove’s customers experience

seamless delivery, management, and higher ROI with optimized customer experience on

every video.



Customer Purchase Experience

Brightcove optimizes every customer’s purchase experience and implementation based on

its business requirements. The company partners with its customers by offering a short,

customized onboarding process to ensure every client is fully prepared to realize its

expected business ROI from the Brightcove solution. Account managers monitor and

support any inquiries while proactively checking that the customer achieves its intended

goals from the solution. Although the Brightcove solutions are SaaS models, with price

structure depending on solution components, Frost & Sullivan points out that the company

boasts competitive and promotional pricing to attract customers and enable them to grow

their video engagement at their own pace

Brightcove acquires customers with tactics including search engine optimization, paid

search, and content syndication; in addition, the company promotes its whitepapers,

blogs, webinars, E-books, and videos through inbound marketing. Customers also have a

30 day trial of every Brightcove product once they indicate interest.

Current customer referrals and event marketing are another important source of new

customer acquisitions for the company. Brightcove participates in an array of industry

events, meetings, and conferences as well as hosts an annual customer conference (called

Brightcove PLAY) to meet with and address topics of interest with current and prospective

customers. The company is also active on social media channels, especially LinkedIn and

Facebook, for additional targeting and presence, further supporting its broad brand

recognition and strength.

Growth Strategy Excellence and Brand Strength

Brightcove organizes its customer base into two segments: media and enterprise.

Customers benefit from Brightcove’s investments in these two distinct market segments.

Media customers, who were some of Brightcove’s earliest customers, have guided the

company to deliver industry-leading performance, scalability, modularization, and extensive

workflow integration, all of which also support its enterprise customers. They also led

Brightcove to develop a multi-regional delivery capability to deliver services closer to the

end customer and monetize video everywhere, a capability that enterprises also value.

Marketing teams within enterprises have partnered with Brightcove to deliver easy to use

solutions with built-in business expertise that do not require extensive IT involvement,

which Media companies also appreciate. Continuous updates to its products and services

keep Brightcove in a competitive market leading position as it focuses on a modular design,

greater scalability, and a broad range of functionality. This functionality is enhanced and

extended in many important areas by Brightcove’s extensive partner ecosystem.

Frost & Sullivan monitors how investments in globalizing its product, especially the scalable

SaaS infrastructure of its platform, give Brightcove a strong competitive advantage. The

company has local sales and marketing teams around the world. Its early and sustained

international investments enabled Brightcove to dominate the OVP market in Japan and



Australia, and enjoy a strong presence in Europe and other Asian markets. The company

powers online video for companies including Showtime, Staples, FOX, Sony Music, GM,

Merck, and TJX. Brightcove’s leading edge technology, targeted market solutions, dedicated

customer care, extensive partner ecosystem have enabled the company to grow revenue

8% from $125 million in 2014 to $135 million in 2015. The company expects its 2016

revenue at $145 to $147 million due to new customer acquisitions, emerging products, and

a strong marketing strategy in the OVP space.

Conclusion

Online video is a significant part of marketing to end consumers for media, brands, and

enterprises. The online video platform market is large and clearly growing; Frost &

Sullivan research confirms that successful providers need to prove a significant return on

investment for customers, along with scalable and complete solutions that will not

complicate business processes, and an enhanced user experience to gain a clear

competitive edge.

Brightcove is a pioneer of online video and continues its dominance with an impressive 8%

growth and expansion of its product line, securing a 23% market leadership in the online

video platform space. With its optimized online video platform solutions, impressive

experience in the market, and growth strategies, Frost & Sullivan is proud to bestow the

2016 Global Market Leadership Award to Brightcove.



Significance of Market Leadership Ultimately, growth in any organization depends upon customers purchasing from a

company, and then making the decision to return time and again. Loyal customers

become brand advocates; brand advocates recruit new customers; the company grows;

and then it attains market leadership. To achieve and maintain market leadership, an

organization must strive to be best-in-class in three key areas: understanding demand,

nurturing the brand, and differentiating from the competition.



Key Performance Criteria

For the Global Market Leadership Award, Frost & Sullivan analysts focus on specific criteria

to determine the areas of performance excellence that led to the company’s leadership

position.

Criterion Requirement

Growth Strategy Excellence

Demonstrated ability to consistently identify,

prioritize, and pursue emerging growth

opportunities

Implementation Excellence

Processes support the efficient and consistent

implementation of tactics designed to support the

strategy

Brand Strength Possession of a brand that is respected, recognized,

and remembered

Product Quality

Product or service receives high marks for

performance, functionality and reliability at every

stage of the life cycle

Product Differentiation

Product or service has carved out a market niche,

whether based on price, quality, uniqueness of

offering (or some combination of the three) that

another company cannot easily duplicate

Technology Leverage

Demonstrated commitment to incorporating leading

edge technologies into product offerings, for

greater product performance and value

Price/Performance Value Products or services offer the best value for the

price, compared to similar offerings in the market

Customer Purchase Experience

Customers feel like they are buying the most

optimal solution that addresses both their unique

needs and their unique constraints

Customer Ownership Experience

Customers are proud to own the company’s product

or service, and have a positive experience

throughout the life of the product or service

Customer Service Experience Customer service is accessible, fast, stress-free,

and of high quality



The Intersection between 360-Degree Research and Best

Practices Awards

Frost & Sullivan’s 360-degree research

methodology represents the analytical

rigor of our research process. It offers a

360-degree-view of industry challenges,

trends, and issues by integrating all 7 of

Frost & Sullivan's research methodologies.

Too often, companies make important

growth decisions based on a narrow

understanding of their environment,

leading to errors of both omission and

commission. Successful growth strategies

are founded on a thorough understanding

of market, technical, economic, financial,

customer, best practices, and demographic

analyses. The integration of these research

disciplines into the 360-degree research

methodology provides an evaluation

platform for benchmarking industry

players and for identifying those

performing at best-in-class levels.

360-DEGREE RESEARCH: SEEING ORDER IN

THE CHAOS



Best Practices Recognition: 10 Steps to Researching,

Identifying, and Recognizing Best Practices

Frost & Sullivan Awards follow a 10-step process to evaluate Award candidates and assess

their fit with select best practice criteria. The reputation and integrity of the Awards are

based on close adherence to this process.

STEP OBJECTIVE KEY ACTIVITIES OUTPUT

1 Monitor, target, and screen

Identify Award recipient candidates from around the globe

Conduct in-depth industry research

Identify emerging sectors Scan multiple geographies

Pipeline of candidates who potentially meet all best-practice criteria

2 Perform 360-degree research

Perform comprehensive, 360-degree research on all candidates in the pipeline

Interview thought leaders and industry practitioners

Assess candidates’ fit with best-practice criteria

Rank all candidates

Matrix positioning all candidates’ performance relative to one another

3

Invite thought leadership in best practices

Perform in-depth examination of all candidates

Confirm best-practice criteria Examine eligibility of all

candidates Identify any information gaps

Detailed profiles of all ranked candidates

4

Initiate research director review

Conduct an unbiased evaluation of all candidate profiles

Brainstorm ranking options Invite multiple perspectives

on candidates’ performance Update candidate profiles

Final prioritization of all eligible candidates and companion best-practice positioning paper

5

Assemble panel of industry experts

Present findings to an expert panel of industry thought leaders

Share findings Strengthen cases for

candidate eligibility Prioritize candidates

Refined list of prioritized Award candidates

6

Conduct global industry review

Build consensus on Award candidates’ eligibility

Hold global team meeting to review all candidates

Pressure-test fit with criteria Confirm inclusion of all

eligible candidates

Final list of eligible Award candidates, representing success stories worldwide

7 Perform quality check

Develop official Award consideration materials

Perform final performance benchmarking activities

Write nominations Perform quality review

High-quality, accurate, and creative presentation of nominees’ successes

8

Reconnect with panel of industry experts

Finalize the selection of the best-practice Award recipient

Review analysis with panel Build consensus Select winner

Decision on which company performs best against all best-practice criteria

9 Communicate recognition

Inform Award recipient of Award recognition

Present Award to the CEO Inspire the organization for

continued success Celebrate the recipient’s

performance

Announcement of Award and plan for how recipient can use the Award to enhance the brand

10 Take strategic action

Upon licensing, company may share Award news with stakeholders and customers

Coordinate media outreach Design a marketing plan Assess Award’s role in future

strategic planning

Widespread awareness of recipient’s Award status among investors, media personnel, and employees



About Frost & Sullivan

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