Loudeye snaps up ad-insertion firm

Loudeye Technologies said it acquired Addition Systems, a developer of technology to insert advertisements into streaming broadcasts online. Financial terms of the deal were not disclosed. Addition Systems' technology is designed to place targeted advertising in audio or video broadcasts online without impeding the material's performance. Seattle-based Loudeye, which provides the technology to deliver secure digital media online, plans to use the ad software to help broadcasters reap more profits from streaming ads online--so far, an unproven market. The software also solves a problem for terrestrial broadcasters replaying programming online: It lets them block existing ads, which can require increased fees because of the added distribution, and replace them with Internet-only advertising.