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AOL to distribute video online

America Online has teamed with a Massachusetts start-up company that wants to create an independent video distribution system on the Internet.

Brightcove, of Cambridge, MA, is creating an automated scheme that would allow independent producers to distribute their video content online, sharing in revenue from advertising or subscriber fees. AOL would be the outlet for the content.

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

Brightcove gives AOL access to content from small and medium-sized publishers and allows those publishers to get more exposure with broader distribution. In order to use the system, producers upload their video through a Web site run by Brightcove, and specify the distribution terms. Selected sites will have access to the video. Users eventually 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 raised $16.2 million from AOL, the Hearst Corporation, Allen & Company and the IAC/InterActiveCorp.

For more information, read Online pioneer looks to shake up TV.

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