According to market reports, Google remains the leader in online videos with gross revenues of more than $1 billion. Analysts expect Google’s online video gross revenues to cross $2 billion by 2013. Analysts project the revenues from online video segment to be worth $8 billion worldwide by the year 2012. They also estimate that the market for video content will also experience similar growth. By the end of the current year, the market for technology services such as those provided by video platform providers like Brightcove is expected to grow to $1 billion for the year.
Given the market potential, recently listed Brightcove (Nasdaq:BCOV) is a relatively smaller player. But the company is growing at a fast pace. Last year, customers increased 57% over the year driven by growth in online video demand. Brightcove now has more than 3,870 customers across 50 countries. The average for million monthly streams grew 56% over the year to 743 million. The company’s revenues grew 45% over the year to $63.6 million. However, losses for the period stayed flat at $18 million.
In 2011, 91% of their revenues were earned from the more than 1,300 customers who subscribe to their Premium service, which is aimed at enterprises. The SMB segment accounted for 9% of their revenues last year. In 2010, Brightcove saw $41.7 million, or 95% of revenues, come from their 905 Premium customers. The SMB segment accounted for the remaining 5% of revenues.
By region, 66% of Brightcove’s revenues were earned in North America, compared with 68% reported in 2010. Europe accounted for 23% of revenues last year, with Japan and Asia Pacific contributing 8% and 3%, respectively, compared with the 6% and 3% reported in 2010.
Brightcove’s Cloud Expansion
To continue their market expansion, Brightcove is working on growing their cloud offerings and recently launched a new release of their App Cloud content app platform. The App Cloud helps organizations to build and operate portfolios of cross-platform native apps for Apple iOS and Google Android smartphones and tablets. The recently released version adds the ability for intelligent cross-platform push messaging and content-level analytics that will help app owners better analyze their apps by engaging the installed base, tracking campaign effectiveness, and identifying the impact of content.
The App Cloud will be available in both a free and a paid edition. The free edition is meant for a single user to develop and test apps, while the enterprise paid edition will help teams of developers and business to collaborate on apps.
Brightcove’s stock is trading at $15.55 with a market capitalization of $410.13 million. It touched a high of $17.80 last week. Last month, Brightcove listed their $55 million IPO to sell 5 million shares priced at $11.00 each.