Loudeye Technologies, Inc., a leading provider of services and infrastructure for the authorized delivery of digital content, today announced it has acquired privately owned Addition Systems, Inc. (ASI), a leading developer of advanced server-side streaming ad and content insertion solutions. Terms were not disclosed.
Addition Systems’ proprietary technology is designed to allow Internet broadcasters to dynamically insert targeted advertising and personalized content into streaming media programming without annoying delays and rebuffering. Sophisticated targeting algorithms, including geographic and demographic targeting, can be used to provide broadcasters the means to collect revenues from high-CPM advertising and private-label brand syndication. For terrestrial rebroadcasters, Addition Systems’ technology is designed to allow them to block existing broadcast advertising and replace it with Internet-specific advertising.
“Boosted by the higher fees created by on-demand marketing opportunities, spending on all streaming media-enabled advertising will grow to $3.1 billion by 2005 from $44 million in 2000,” according to a report released June 18 by the Boston-based Yankee Group’s Internet Market Strategies practice.
Addition Systems’ technology is a cross-platform solution that supports video and audio in both Windows Media(TM) and RealMedia(TM) formats. Targeted insertion is performed at the server eliminating the need for specialized client applications or downloads and providing native support for streaming to non-PC devices including digital set-top boxes and wireless devices.
Loudeye will offer Addition Systems technology on a stand-alone product basis and as an integrated component of Loudeye’s digital media infrastructure suite of products. Loudeye has turnkey digital radio products for online radio stations and terrestrial rebroadcasters, as well as portals and other Internet sites desiring syndicated radio programming.
“Online radio applications increase the ‘stickiness’ of consumer-facing Internet sites, drive music CD sales and generate interest in other music services such as subscriptions and pay per view,” said John T. Baker, Loudeye chief executive officer. “Addition Systems provides valuable functionality for businesses wanting to personalize and monetize digital music, online radio programming and other streaming media through channels ranging from the Internet to cable and satellite.”
Loudeye is demonstrating its Internet radio and Addition Systems technology to customers at Booth # 1021 of this year’s Streaming Media West convention being held June 20-22 in Long Beach, CA.
