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Emergence of Broadband Video ASP Models

The explosion in broadband video and Internet TV has created a need for enabling platforms allowing both media companies and enterprises to put their content online.

A new breed of application service providers, called Broadband Video ASPs (BBV-ASPs) is emerging to offer publishing, syndication, commerce, content management, security, and other platform components, in the form of 'software as a service' to satisfy these needs. ABI Research expects the broadband video ASP market to reach $1.9 billion in revenue by 2011.

"Broadband Video ASPs offer what are essentially white-label turnkey video platforms to media and enterprises, enabling them to create branded video destination sites," says research director Michael Wolf. "By offering these platforms, which can be sold in their entirety or as best-of-breed components, they allow their customers get to market faster using a variety of monetization models."

Companies such as Brightcove, NBBC (a division of NBC/Universal), Entriq, Roo, Maven Networks, and thePlatform (a division of Comcast) are key competitors in this new marketplace. Because this market is in a nascent stage, business models vary widely, with some charging for usage while others offer revenue sharing for both advertising and pay sites. Some, such as Brightcove and Roo offer their own ad networks, while some, such as Entriq, focus more exclusively on security and pay commerce models.

"Content management and publishing are table stakes in this business," said Wolf. "Over time, the ability to deliver the best distribution and monetization capabilities, either by interfacing with other distribution platforms or by offering their own solutions will be key to long-term survival for BBV-ASPs. This ability will be a key factor in convincing customers to use their platforms rather than to build video platforms in-house."

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