Brightcove gets deals for magazine Web site video

By Yinka Adegoke

NEW YORK (Reuters) - Online video syndication service Brightcove Inc. has signed deals with three publishers to add video clips to the Web sites of top U.S. magazines including Elle, Cosmo and Men's Health.

The moves come as magazines try to engage more readers online and tap into the growing Internet video advertising market.

Magazine publishers Hachette Filipacchi Media U.S., which is a unit of France's Lagardere, Hearst Corp. and Rodale Inc. separately said on Thursday they signed deals with Cambridge, Massachusetts-based Brightcove, which helps media companies manage ad-supported videos.

"It's an opportunity for the first time to get into the higher-value branded advertising space that TV has dominated before now," said Jeremy Alliare, Brightcove chief executive.

The privately held company's backers include Hearst, IAC/InterActiveCorp, and AllianceBernstein L.P.

Brightcove said the higher penetration of broadband in U.S. homes and the falling cost of video delivery means it is more cost effective to launch online video services.

Hachette Filipacchi, which is home to Elle, Car and Driver and Woman's Day, is producing original clips at a dedicated TV studio that will be supported by advertising.

Elle is now offering serialized videos, such as clips of fashion shows, from around the world.

"We're getting a little more sophisticated about the way we use video now," said Marta Wohrle, senior vice president of digital media at Hachette Filipacchi.

But Wohrle said it was still too early to make significant revenue from online video advertising.

"It's very difficult for advertisers, because the metric for buying online advertising is still the number of page views, but video play isn't a page view," she said. "The next phase is to replace that metric."

Rodale, which publishes Men's Health, Bicycling and Runner's World, is rolling out video initially on the Men's Health site with features such as instructional workout videos and celebrity interviews.

Brightcove signed a similar deal with Time Warner Inc.'s Time Inc. last month to deliver video for brands including People, Fortune and Sports Illustrated.

"We've approached online videos with brand integrity in mind," said Paul Speaker, president of Time Inc. Studios. "It's all about how our editors continue to engage their audiences, video is now part of that process."