AOL, Brightcove to Sell Video Downloads

DULLES/BOSTON, October 30: A new service from AOL and
Brightcove allows content providers to sell video downloads through the AOL
Video platform and receive up to 70 percent of the revenue generated from their
sales.

Brightcove is a privately held company, founded by Jeremy
Allaire in 2004, that enables video publishers to distribute their content.
Using the software, producers can upload their shows to the AOL Video portal,
where those titles will be automatically indexed in the AOL Video Search
engine. Consumers will be able to purchase and download the videos and watch
them on their computers, network connected TVs or other devices.

"The high-quality and imaginative content from both
large and small producers is a great complement to our growing video
library," said Kevin Conroy, the EVP of AOL. "Working with Brightcove
ensures that AOL Video will have a constant stream of some of the most exciting
and provocative new video flowing from professional content producers and in
turn, gives them a high-profile outlet for distributing their videos."

In the coming months, AOL and Brightcove may introduce other
commerce models to the service including ad-supported syndication and video
rentals.

Producers can also sell the same video downloads through
their own site, using the Brightcove publishing services, to create a custom
broadband channel. The Brightcove Network gives any content owner the ability
to build a commercial Internet TV channel, launch it on their site, syndicate
it to other websites, and distribute it on Brightcove.com. The service is free
to use. Content owners who use the Brightcove Network give Brightcove the right
to sell advertising in their videos, and in turn they receive 50 percent of the
revenue from ads that run in their channels. In addition, content owners can
choose to offer video downloads for rental or purchase. They have the option to
set any retail price they choose, with a $0.99 minimum, and they earn 70
percent of the sale price for each transaction.

Allaire, the chairman and CEO of Brightcove, noted, "In
the last six months we've seen explosive growth in the online video market,
especially in consumer sharing, but this is only the beginning of the Internet
TV era. Now content producers, from serious amateurs to major studios, are
looking for an approach to Internet video that gives them commercial
opportunities with their content as well as control over their distribution,
and that's exactly what we're delivering with the launch of the Brightcove
Network."