"It's a ground breaking agreement because it shows the momentum of internet TV. There are a lot of possibilities for advertisers because the move to internet-based and on demand video will open up a lot of new inventory. The second trend also shows how advertisers, while using targeting and tracking through web tv, can become publishers, too. Content is no longer defined to linear channels," says Adam Berrey, VP of Marketing and Strategy, Brightcove.

Brightcove is currently available in an invitation-only commercial preview. Publishers are able to reach consumers through broadband channels while generating revenue from advertising and pay media sales they control. Brightcove will be generally available in 2006.

"We are thrilled to get both the backing of such a strong group of strategic investors and a major distribution agreement with AOL. The opportunities these investors bring to Brightcove, combined with the relationships we are already developing, put us in an incredible position to deliver our open internet TV service and realize our mission to transform the media landscape by enabling video publishers to build broadband businesses that reach consumers directly through the internet," says Jeremy Allaire, CEO, Brightcove.