Live from DEMOfall: Lirix innovates in music advertising
Blogged Live from DEMOfall by Alex Iskold
Until
now, online music advertising has been a somewhat unsolved - sometimes
controversial - problem. Today Lirix
unveiled at DEMO an intelligent and elegant solution to the problem, called AdLirix.
It is a smart, context-sensitive advertising solution that will allow musicians
to make money off their music in a fair way.
The ads are inserted between tracks, never interrupting the user experience. But more importantly, the ads are contextual - because they are based on the lyrics of the songs! The advertisers bid to place ads in an auction fashion, but they are not charged unless their ad is played. The system also rewards artists, because even if their music is pirated - they will be paid because ads play. All and all it seems like a well thought through and elegant solution.
Here is what DEMO staff said about Lirix:
‚ÄúProtected by a recent patent, Lirix‚Äôs dynamic ad-insertion platform delivers targeted, dynamic advertising in streaming music and enables interesting new business models for over-the-air digital music services. The Lirix platform offers particular benefits to MVNOs, which can now supplement branded phone service with a potentially richer ad-supported music service offering as well.‚Ä?
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I don't think this is a good idea. Their voice extraction & recognition technologies should be great great great... But what's the relation between the lyrics of the song I listen to and my consumer attitudes!!! It would be a better idea to analyze rhytmes.
Posted by: Emre Sokullu | September 26, 2006 9:29 PM
By the way, these live updates are great!! Thanx :)
Posted by: Emre Sokullu | September 26, 2006 9:30 PM
I'll have to agree with Emre. I don't see how ads based on lyrics will be beneficial to me.
Posted by: Klim | September 26, 2006 11:22 PM
Emre / Klim,
Think about it from the perspective of the artists. Its fair that they make money on their work. But here is the really great thing about this. Instead of working with record labels they can sell the music direct and get paid from ads. Removing the labels out of the equation will save us all a ton of money.
Alex
Posted by: Alex Iskold | September 26, 2006 11:38 PM
Alex,
I agree with you; definitely a business model with ad supported music would be very beneficial for everyone.
But I'm against the path they follow; because there's negligible amount of consumer attitudes data inside lyrics. That's why I say "It would be a better idea to analyze rhytmes." or maybe doing them both, but not lyrics only... But I think they're on the right track and even a very little disturbance in the highly competitive music distribution industry may attract the attention of giants.
Posted by: Emre Sokullu | September 27, 2006 12:46 AM
I don't know why any artist would want their music peppered with advertising that's shoehorned between their tracks. I'll buy good music if I like it and I don't want to buy or listen to advertsing between the songs. I don't think it's elegant, in fact it bastardizes the music. The next thing they'll try are product mentions IN the songs like the can of Coke sitting on a table in a movie.
Posted by: Stewart | September 27, 2006 7:28 AM
Alex,
Where does the information about the ads being lyrics based comes from? It is not in the DEMO recording; they only talk about matching the theme, not how they matched it. And it is not on their website either.
Was that something you picked up while visiting their booth?
Posted by: Alexandre Rafalovitch | October 5, 2006 6:40 PM