RealTime IT News

Internet Radio Spot Service Launched, Stock Soars

Shares in Digital Generation Systems Inc. more than doubled after the company reported the launch of its iAudio service, which transmits broadcast-quality radio spots over the Internet.

Shares of the nationwide multimedia network operator rose $1.06 to close at $4.25 as 6 million shares changed hands, more than a hundred times the average volume for the past three months, according to Bloomberg News. The stock closed the day before at $2.81. The high Thursday was over $7.

"Together DG Online and iAudio provide a complete e-commerce solution to radio advertisers, agencies and studios," said Hank Donaldson, DG Systems' president and CEO.

"With the prevalence of digital audio workstations among studios and radio stations, iAudio provides a seamless integration into existing equipment and environments," the company said.

iAudio allows content producers to send sound files directly from their desktops over the Internet to Digital Generation for distribution to radio stations. Users no longer need to have the proprietary Digital Generation hardware and software on-site that was previously necessary, Bloomberg said.

Digital Systems operates a nationwide digital network that links hundreds of advertisers and ad agencies with more than 5,500 radio stations and 500 television stations across the U.S.