Adwired helps advertisers make money out of TV commercial reselling

US-based company Adwired is making a push with its online content and payment management solution for TV commercials. The service helps TV commercial creators and content rights owners to generate revenue out of previously aired TV ads.

The company has set up a 10,000 commercial strong database from various TV commercial content owners, which can be accessed online, by subscribers after payment.

Private industry users can buy TV commercials for non-commercial use. Members who have made their content part of the database are paid every time their commercial is sold.

Adwired protects the copyright ownership of advertising ads through its pioneering deployment of Microsoft's digital rights management technology on the Internet.

A file is encrypted so content cannot be viewed without an electronic key. Once a high-resolution file has been purchased it can be downloaded to the member's desktop.

A member is able to view the commercial from their computer or record the commercial to videotape to show the client. They can also order the commercial from Adwired but they can not retransmit the encrypted images over the Internet. "This extra measure of security safeguards content from being distributed for free," points out Adwired's senior technologist Kelly Dunn.

TV commercials have been copied off the TV screen and sold for research and for competitive brand studies by ad agencies since the sixties. Commercials are purchased by the agencies for new business pitches, account supervisors purchase their competitors' newest spots, subscription sites on the Internet sell individual ads and some market their own Best of Collections.

Adwired founder Whitney Rauh estimates that a $100 million revenue stream outside the longstanding licensing agreements that govern normal public commercial use exists.

This diversion of intellectual property for private trade use "fed a cottage industry on steroids for forty years of unregulated growth until it burgeoned into the 800 pound gorilla no one dares confront today," says Rauh.

"Every legitimate stakeholder loses," said Rauh. "The performers miss out and most importantly, the legal content owners are totally ignored," she adds. In the US, the intellectual property owners are the advertisers; never once have they been paid when their commercials were sold to the trade. Rauh has been hoping to change that through Adwired.

Curiously, a few privileged content owners successfully claim compensation for resold work even before Adwired. Major networks and broadcast outlets are uniquely positioned to profit from the after sales of their content. "The fact that the TV monitoring companies pay some broadcast stations $13 for each content resale, acknowledges the content owners' right to claim payment," reveals Rauh.

Adwired has modeled its repayment mechanism after those begun by the performing rights associations. "Just ten years ago, ASCAP and BMI first began distributing royalties received from TV & radio stations back to advertising agencies. Today these sums are quite significant. Over the next ten years, we hope to achieve the same level of compensation on privately used commercials," discloses Rauh.

Adwired will distribute major portions of the collected fees back to both content owner and the agency (which supplies credits and the performer's contact information).

Adwired recently received groundbreaking permission to showcase the 2002 One Show winning commercials in a public section of their site from the Screen Actors Guild, AFTRA, and the American Federation of Musicians. The One Show winners are the first commercials in advertising that are DRM enabled. They can be accessed at with only a simple registration.

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