Google's Grip Tightens On Online Media

There has been a flurry of acquisitions recently with Google purchasing anti spam software reCAPTCHA and Adobe buying Omniture, but now there are rumours of another big purchase.

Mark Glaser, Executive Editor of PBS MediaShift, tweeted on his account that Google are in talks with Brightcove for a deal totalling anywhere between $500 and $700 million.

Google owns Youtube which it acquired in October 2006, which is the current market leader when it comes to online video, so why would they want to purchase Brightcove? Well for one, Brightcove is already profitable and is on target to hit $80million in sales this year alone. And the other reason? Youtube is primarily known for serving consumer videos.

If the acquisition of Brightcove goes through Google will have control of both the B2C and B2B market.

There is a concern though, that if the acquisition goes through, Google will start to have a monopoly over online media?

Brightcove is currently the leading B2B Internet TV platform/network that allowing content makers to monetize their content with ad revenues. It has raised $91 million from investors including General Catalyst Partners and AOL. The company decided that it would stop accepting consumer uploads in 2007 to focus on what it saw as a more lucrative business model only serving B2B customers. It worked too - in 2008, Brightcove signed up all major commercial broadcasters in the UK.

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