Update: CTO and president Sean Knapp told paidContent:UK that was “the press release getting ahead of product and engineering”. Ooyala has been migrating Telegraph’s whole archive vids to its platform

One fascinating part of this picture - Ooyala is taking up residence in Telegraph’s new Euston Project innovation centre, run by editor Will Lewis. “They’re givings us cots and everything,” Knapp joked. “We will have a permanent workplace there - Paul (Cheesbrough, Telegraph CTO,) has been very generous.

“One of the mandates of the Euston Project is to drive innovative research and development around the media space as a whole, not just The Telegraph.”

Knapp said Ooyala has other London workspace but is siting five staff at Telegraph.co.uk’s digs, “and growing throughout the rest of the year”. “I have a feeling, given the innovation curve coming out of the Euston Project, that we’ll be spending a lot of time there,” Knapp said, remarking that Ooyala will function much like a startup at the newspaper’s office, its engineers pulling 3am shifts.

Ooyala is on a big European drive at the moment and is keen to get word out to potential clients here, having raised a $10 million third funding round in October for global expansion, so it’s understandably pleased with this client win. Brightcove owns a large number of the contracts here for third-party video player provision, so it will need more like this.

Ooyala CEO Jay Fulcher, speaking to me in October, said: “We will probably be doubling, possibly even tripling our operation (from over 60 staff) over the next 12 months.” Half of Ooyala’s usage today is from outside America. “There’s a very big market outside the U.S.,” Fulcher said.

Knapp added to me on Wednesday: “We’re certainly paying a lot of attention to Brightcove’s customers, but if our only goal was flipping over Brightcove contracts for Ooyala, we’d be fighting over a very small market opportunity - we’re working to increase a larger slice of the pie.”

Telegraph.co.uk both produces its own in-house videos and takes news produced by ITN.