The product unveiled this week at DEMOfall 2006 in San Diego can link advertisements to key lyrics and words in songs.
Lirix Media System, the advertising-supported download service, mixes music with audio advertisements and inserts the ads between music tracks. The music, ads and control instructions are all separate files all saved on the device. This allows the platform to play ads at unpredictable intervals during playback.
The company calls the enabling technology "on device dynamic ad insertion." It received a U.S. Patent and Trademark Office in May, with international patents pending.
The platform works on PCs, cellular phones and MP3 players that run Lirix's client application. Pre-define rules tell the application targeted demographics on a particular ad by zip code, age, sex, and other attributes, such as theme songs.
The advertiser is only charged when the ad plays. The service tracks what's played and pays music publishers when the song is played.
SpiralFrog, which announced the entertainment site earlier this year, said it would launch with a similar business model, where consumers could download the music for free from its ad supported site.