Variety reported that my former employer (from Sept. to Dec. 2005) News Corp. decided to partner with Brightcove and have it power and syndicate its video content.
Beet.tv said ”syndication will never be the same,” hmm… not really when you read the fine print… and, News Corp. could have really killed two birds with one stone, and it didn’t, instead it just laid an egg that will hatch a headache in 12 to 18 months.
While I like to be “fair and balanced” in my reporting on News Corp. and all of its subsidiaries, sometimes I think the most powerful global media company does not go far enough (and trust me, I know all about News Corp. going too far when they shouldn’t).
The point is: allowing users to embed clips everywhere online is progressive, bold and the right thing to do. But wait, that’s NOT what this deal entails, according to this observation:
Unfortunately, “retaining control” means that Fox’s offerings may seem like Internet TV on training wheels - limiting you to watching their content on their terms - or as Fox describes it - “managed syndication to select website affiliates.” (…) In other words, you can enjoy the viral power of embedding Fox videos in your blogs or MySpace page…..
While Beet.tv says “News Corp. goes one step further than CBS in allowing folks to embed clips,” which CBS does not, News Corp. is not really doing anything differently. But that’s not even my objection here (from a strategic perspective).
All media companies - WatchMojo.com as well - are going towards full embed or pretty close to full embed. We’ll be moving in that direction in the next couple of weeks after 18 months of not offering embeds off our site (we’ve always encouraged embeds off our syndication network of 20+ of largest viral, file sharing sites). YouTube made that issue a non-debate: let users grab and embed your code everywhere. Until YouTube, it was not clear if this was wise; today, it’s a no brainer.
But speaking of YouTube, which News Corp. was miffed on not buying when it sold to Google, I think partnering with Brightcove is doing it halfway and in fact creating a headache down the road.
I understand News Corp. is a content, sales and marketing company and not a tech company per se, but MySpace is fighting tooth and nail to try to usurp YouTube’s throne as the largest video site, why would News Corp. strengthen Brightcove’s hand and not reinforce MySpace’s hand? Frankly, one of the few places people can embed the videos will be on MySpace, so why use Brightcove’s player. Brightcove is a fine product but it’s not sliced bread.
It’s one thing to stab Chris and Tom in the back publicly, Mr. Murdoch, but why create a monster in Brightcove? Sure, Brightcove does work with a plethora of companies, but I’m still not convinced about Brightcove. Read my initial KISS Brightcove post here.
Brightcove’s backers include General Catalyst Partners, Accel Partners, AOL, Hearst Corp and IAC. They’ve plunked in $60M and News Corp. is really just creating a competitor when it need not to instead of bolstering their own. Of course, it could be that News Corp. is kicking the tires for an eventual acquisition or investment in Brightcove. That’s certainly an option… but seeing how MySpace knocked down the valuation in Photobucket before buying them, this runs counter to Murdoch’s modus operandi.
So, in a crazy way, I commend News Corp. for this move, but from a “strategiary” perspective, it does not make sense.
But wait, there’s more:
News Corp. also paid $650M for IGN (my employer from May 2005 to Dec. 2005) and its digital distribution platform can be, in theory, be embedded in News Corp.’s player… I’ve argued that ad-supported video will destroy download sales, here and here, but you might as well leverage the digital distribution business and embed that into your video offering.
So I rate this move as a small step forward, but one that News Corp. will probably come to regret.
Bottom line: and I swear this is not me taking a shot at any managers within the FIM empire, but FIM needs some help with integration of their far-flung assets; and this is a clear sign thereof.
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