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AudioBase Goes Full Stream Ahead

Streaming Audio Banner Ad Company Morphs Into Audio Solutions Provider



by José Alvear
May 9, 2000

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While on her recent tour, pop superstar Mariah Carey woke up one morning in Osaka, Japan and left a sleepy-voiced message. The message was then converted to a streaming media file that popped up on her web site MCarey.com where millions of her fans listened to it.

Although this is similar to the phone-to-streaming technologies made famous by Tellsoft (http://www.tellsoft.com) and Net Technologies (http://www.nette.com), this system is called VoiceBack created by AudioBase. The big difference is that AudioBase just requires a Java-capable browser for playback and doesn’t use Real, QuickTime or Microsoft players.

Although it was originally conceived as a streaming audio banner ad company, Audiobase (http://www.audiobase.com) has grown into an “audio solutions provider” according to David Haynes, CEO and founder of the company. Which means they want to help their customers “audio-architect” their banners, email and web sites, says Haynes.

They’ve created streaming audio banners for companies like Barnes & Noble, Macy’s, MCI Worldcom, Sony, Intel and Disney. Music label Windham Hill (http://www.windham.com) features an auto-start “radio” application that plays songs from its stable of artists. “One out of eight people listened to all 30 minutes of the audio,” says Haynes, “and e-mail registration went through the roof.”

But with the popularity and ubiquity of Real, Microsoft and QuickTime why would customers go with a relatively unknown system like AudioBase? For one, there’s reach, says Haynes. “You can get AudioBase through firewalls with HTTP streams,” he says. “Also there are no plug-ins to download and install.” But there’s also the issue of brands. With AudioBase, customers get their “own look and feel and no pre-sold real estate on the player that gets shipped to everybody.”

Despite those issues, Haynes says he’s definitely a fan of Real and Microsoft’s systems. “I think their quality and high bandwidth is superior for pure broadcast, like live streaming. I don’t think we’re necessarily their competitors though. We position ourselves as audio solutions provider rather than selling software.”

Backing for AudioBase has been growing recently. In December it received $20 million in financing from investors like Bay Partners, Hambrecht & Quist, Charles Schwab, and Sony Music. And just last week Loudeye (http://www.loudeye.com) said it would begin supporting Audiobase’s audio codec in its encoding work.

This all means pretty good things for the company. But there is a danger of being relegated to a niche player in the streaming media industry. Would adding a live broadcasting component help the company? “I wouldn’t discount the live component in the future,” he says, “however it’s not part of our core competency today.” Also lacking is a video component like its closest competitor, RadicalMail (http://www.radicalmail.com).

AudioBase’s core competency is in letting customers add audio to their site, and to provide clear results on their campaigns to understand who’s been listening to what and how long. “We want to empower [companies] to think creatively,” says Haynes. “We want them to ask: ‘What is my strategy for sonifying my web presence?’”

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