Loudeye Muscles Its Way Into L.A.

Webcasting provider Loudeye Corp. Thursday said it has bought certain assets from privately-held, Digital Media Broadcast (formerly EncodeThis!).

The deal gives Seattle-based Loudeye a larger footprint in Los Angeles, where it says it can better serve one of the largest media services markets in the world. Financial details of the transaction were not disclosed.

Digital Media Broadcast provides outsourced digital media services for a variety of customers in the media, entertainment and e-commerce industries.

The Los Angeles-based company’s customers include television broadcasters and film studios, major music companies, independent music labels, and retailers. Loudeye said it will gain customer relationships and a sales pipeline from Digital Media Broadcast and has hired certain employees from Digital Media Broadcast’s sales staff. Steven Samuels, the former chief executive officer of Digital Media Broadcast, will serve as general manager of Loudeye’s Los Angeles operations.

“There is growing demand from media and entertainment companies seeking to capitalize on digital media technologies to market, promote and distribute film, broadcast and music content,” said Samuels. “Our customer relationships, business pipeline and Southern California location, in combination with Loudeye’s extensive suite of digital media services, comprise a powerful combination.”

Prior to the acquisition, the two companies have been working together on a referral and reseller basis.

The newly combined operations will provide services offering, including digital media capture, encoding, management, hosting, delivery, streaming and application services.

Loudeye has been on a roll lately developing its offerings. Last month the company announced a deal to acquire Seattle-based Wonderhorse’s Realtime Server Platform. Back in January, Loudeye matched wits with Audible Magic, a Los Gatos, Calif.-based provider of content-based identification (CBID) technologies, in a partnership to tackle digital music tracking.

Its recent successes with big-name clients like America Online , Microsoft Network and Napster behind them, Loudeye execs say a larger physical presence in L.A. should help them woo entertainment moguls more efficiently.

“Media and entertainment companies are clearly committed to digital distribution for marketing and promotional activities,” said Loudeye chairman and CEO John Baker. “With Digital Media Broadcast’s industry relationships and a Los Angeles presence, we can provide an enhanced level of local attention and service to a wider range of media and entertainment customers requiring encoding, hosting, restoration, media management and digital distribution services.”

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