Paramount Pictures this morning unveiled an online video clip service using technology developed by Morrisville-based Digitalsmiths.
The company's VideoSense system allows films to be searched by actor, line of dialogue, location, genre or product, the New York Times reports. Paramount, like other film studios, is looking for new ways to turn old movies into cash and plans to sell video clips to business customers such as advertising agencies or foreign broadcasters. Eventually, the studio expects to open the site (Paramountclips.com) to consumers, the newspaper reported.
For Digitalsmiths, founded in 1998 by CEO Ben Weinberger and chief technology officer Matthew Berry, the deal elevates the company's presence in the important Hollywood market. In September, the company hired three new employees for a Los Angeles office.
"There is big demand for more premium content from Hollywood studios, television, news and sports," said Melissa Sargeant, Digitalsmiths' vice president of marketing, in a phone interview. "This industry is really moving forward, despite what's happening with the economy."
Getting the plug from the New York Times doesn't hurt, either. The newspaper notes that although clips from films like “The Godfather” are already available free on YouTube, analysts say that the new service was a chance worth taking.
“This Digitalsmiths technology is very impressive because it gives the ability to slice and dice and remodify content in a safe, automated way,” said Bobby Tulsiani, a senior analyst at Forrester Research. “It remains to be seen if it opens up a new business opportunity, but we didn’t think people were going to pay for ring tones, either."
Digitalsmiths raised $12 million in venture financing in Nov. 2008, from investors that included the Aurora Funds of Durham. In January, Cisco Systems also invested in the company.
The private company moved to the Triangle from South Carolina in 2007 and now employs about 50 people, mostly in Morrisville.
The company doesn't release financial data, but is "on a path to profitability," Sargeant said. "Our business is growing and doing well. Our expectation is that hiring will continue in 2010."
Digitalsmiths' other customers include Warner Bros. and TMZ, the gossip and news Web site. "We hope to be making more customer announcements soon," Sargeant said.
Read the full New York Times story here.
Assistant Business Editor Alan M. Wolf joined the N&O in 1999 covering the business of health care. He became an editor in 2001, and helps oversee the paper's daily business coverage and Sunday Work&Money section. He lives in Clayton with his wife and two children. Reach him at 919-829-4572 or 
