AOL to distribute video online

America Online (AOL) has teamed with a Massachusetts startup that wants to create an independent video distribution system on the Internet.

The startup, Brightcove, is creating an automated scheme that would allow independent producers to distribute their video content — sharing in revenue from advertising or subscriber fees. Presumably, AOL would be the outlet for the content.

While AOL, a division of Time Warner, has other video distribution deals, none would allow video producers an automated way to post content without negotiating a unique deal.

Brightcove gives AOL access to content from small and medium-sized publishers and allows those publishers to get into the game with broader distribution. In order to use the system, producers would upload their video through a Web site run by Brightcove, and specify the terms of its distribution. The sites, like AOL, that will have access can be manually selected. Eventually they will be able to select how they want to be paid.

When the service begins early next year, Brightcove will offer only advertising-supported video. Later it will allow publishers to charge viewers to rent or buy videos.

Brightcove announced that it had raised $16.2 million from AOL, Hearst, Allen & Company and the IAC/InterActiveCorp. Brightcove also said Barry Diller, the chief executive of IAC/Interactive, would join its board.

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