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Brightcove Inc., the leading global Internet TV platform, announced the formation of a majority-owned Japanese subsidiary, Brightcove KK. The new subsidiary is backed by $4.9 million in new investment from Brightcove Inc. and four market-leading Japanese strategic partners: Dentsu, Inc., J-Stream, Inc., transcosmos, Inc. (transcosmos), and Cyber Communications, Inc. (CCI). Three of the investment partners, Dentsu, J-Stream, and CCI, along with Brightcove Inc., will be sales agents for Brightcove KK in Japan, giving Brightcove KK immediate and powerful access to the Japanese market.

Headquartered in Tokyo, Japan, Brightcove KK will operate a localized version of Brightcove’s award-winning, on-demand Internet TV platform, which is currently used by media companies and marketers across North America and Europe. With Brightcove KK, Japanese media companies and marketers will gain access to the most powerful and scalable software as a service (SaaS) solution available for online video players, distribution, and advertising.

“Brightcove enters the Japanese market at a time when household broadband penetration has surpassed 50 percent, presenting enormous opportunities for media companies and advertisers to build online businesses and engage audiences,” said Jeremy Allaire, chairman and chief executive officer, Brightcove. “It is a great privilege to be partnering with the market leaders in Japan for digital media and advertising. By combining the proven Brightcove technology with the capabilities of our partners, Brightcove KK will give media companies and marketers in Japan a unique solution for implementing their online video strategies and unlocking the potential in the market.”

The Brightcove KK partners represent the market leaders in Japan in digital media, advertising, and content delivery.

  • Dentsu, Inc. is the largest advertising company in Japan with a market share of approximately 30 percent and has over 6,000 clients Groupwide.
  • J-Stream, Inc. is Japan’s largest content delivery network specializing in streaming media for content providers and business corporations.
  • transcosmos is Japan’s leading information processing outsourcing company adopting the latest Internet technology through the strategic investment and business development.
  • CCI is Japan’s largest interactive adverting company that currently has more than 30 percent of the country’s digital brand marketing, a popular advertising serving technology, and online advertising network.

These companies bring tremendous reach into the media and marketing sectors in Japan, and will help ensure the success of Brightcove KK in the Japanese market.

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Austin, TX, is the most “Digital Savvy” city, according to a new analysis from consumer and media research firm Scarborough Research. Twelve percent of Austin adults are Digital Savvy*, and they are almost twice as likely as the national average to be in this leading edge consumer segment. Las Vegas, NV, Sacramento and San Diego are also leading Digital Savvy cities, with 10 percent of their residents having this higher level of technological orientation and adoption. Nationally, six percent of all consumers are classified as Digital Savvy. The ranking of Digital Savvy cities is part of a just-released complimentary Scarborough report, “Understanding the Digital Savvy Consumer,” available for download at http://www.scarborough.com/freestudies.php.

Austin, Texas.In terms of purchasing patterns, Digitally Savvy consumers are a luxury-oriented group. They are 56 percent more likely than the average consumer to own or lease a luxury vehicle; 175 percent more likely to have spent $500 or more on men’s or women’s business clothing during the past year and 49 percent more likely to own a second home. Online, this consumer group is equally high-end in its shopping behavior.

More than half (54 percent) of the Digital Savvy spent more than $500 online during the past year, and 35 percent spent upwards of $1,000 during that timeframe. They are far more likely to spend online in high-end purchasing categories, such as automotive and travel, as well as every day items, such as books and clothing.

“The most Digitally Savvy markets are known for leading the nation in a variety of hi-tech behaviors. They also typically have the presence of major universities and represent established tech corridors in the U.S.,” said Gary Meo, senior vice president, print and digital media services, Scarborough Research. “The Digital Savvy is a consumer segment which is important to monitor – both locally and nationally. They are early adopters when it comes to fully integrating new technologies into their lives, and their shopping patterns, demographics and lifestyles could presage behaviors of consumers across the country.”

Politically, Digital Savvy consumers are 25 percent more likely to be “Independent” voters **. In terms of other major political parties, they are on par with the national average with being Democrat or Republican.

Sacramento.Active lifestyles and on-the-go living are the hallmarks of the Digital Savvy. They are far more likely to enjoy athletic leisure activities including basketball, yoga, free weights training and jogging. The Digital Savvy are 18 percent more likely to have longer commutes – one hour or more to work each way. Given this active lifestyle, they rely on cell phones for communication and information. More than half (59 percent) of the Digital Savvy use their cell phones for email. They are, on many levels, an active and “on the go” group and their digital savvy is a natural compliment to that lifestyle.

Demographically, the Digital Savvy are male, young and wealthy. Fifty-six percent of them are male and 77 percent of this consumer group is below the age of 44. They are 132 percent more likely than the average consumer to have an annual household income of $150,000 or more. In fact, more than half (57 percent) of this consumer group has an annual household income of $75,000 or greater.

* Digital Savvy are defined as those consumers who rank highest on a scoring system that includes higher-than-average ownership of certain hi-tech items (such as DVRs, satellite radio or VoIP); greater likelihood to engage in certain Internet behaviors (including blogging, downloading music and online gaming); and usage of leading-edge cellular device features (email, text messaging, etc.). For specifics, please see the “About the Analysis” section at the end of this report.

** Independents are those in the Scarborough survey who cite their political affiliation as “Independent,” “Independent but leaning closer to Democrat,” or “Independent but leaning closer to Republican.”

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