MUSICAL VARIATION A TOUGH SELL

SANTA Monica, California- based Muzit, which has six employees, is working with recording artists who want to reach consumers who have illegally downloaded their songs, said chief executive Tommy Funderburk, who is also a rock singer.

US rock band The Mavericks last year ran banner ads on several websites, inviting fans to provide an email address for the chance of winning a guitar signed by the band.

“Many of these people are fans and potential customers,” Funderburk said.

PeerLogix, which has six clients so far, according to the company, is pursuing a similar model.

It works with brands and music, TV and movie producers who want to advertise their content or products to the people who are illegally viewing the content.

Some media and advertising industry executives said they doubt these businesses would take off.

Because entertainment companies have long called for tougher anti-piracy laws, they said, lining up with companies seeking to profit from illegal downloads could undermine their credibility.

Ashwin Navin, chief executive of Samba TV, was the co-founder of BitTorrent, a pioneering platform for illegal viewing and sharing of content.

He called the effort to create an advertising market aimed at pirates “a tough nut to crack”.

David Morgan, chief executive of Simulmedia, a New York-based ad tech firm, notes it is against the ethos of the way media companies think.

“The entertainment industry is fundamentally built on the creation and monetisation of unique intellectual property,” said Morgan.

But to Tru Optik’s Swanston, it’s only a matter of time until the industry embraces this big market.

“Anyone not tapping into this immense source of audience data is at a huge disadvantage to their competitors,” he said.