Instream, the Video Ad Network announced today that it has emerged from its Beta period as one of the largest sources of managed video advertising inventory on the Internet.

"Some have said there is a shortage of quality in-stream video ad inventory on the Internet -- the truth is there is a shortage of quality managed video ad inventory. Instream aggregates high quality Internet video sites onto the leading video advertising technology platform, forming a new, high quality, high reach, single source for brand advertisers embracing video advertising. We believe that, after the major portals, Instream is the single biggest source of managed video ad inventory on the Internet," said Tom MacIsaac, President and CEO of Instream.

When advertisers venture beyond the few places with sophisticated in-stream video ad management capabilities, such as the major portals and a handful of other leading video Internet sites, they have little control over the delivery of their ad campaigns in terms of targeting, frequency capping, session management, ad unit standardization (such as a synchronized IAB banner) and other requirements. The reporting they receive back is equally limited. Advertisers who buy the Instream network can receive not only state-of-the-art ad delivery but also consolidated, rolled up reporting including the enhanced reporting requirements emerging for Internet video such as closed loop auditing and percent-of-ad-played reporting.

Instream is able to deliver such highly managed inventory because its technology platform is built on the best-of-breed Lightningcast video advertising platform, which is also used by AOL, Microsoft, ABC News, Scripps Networks, A&E Networks, The Employment and Career Channel and others. As a result, Instream has the opportunity to leverage the Lightningcast network to provide remnant inventory sales for Lightningcast technology customers as it is currently doing for The Employment and Career Channel. In addition, Instream leverages the Lightningcast platform to enable dynamic ad insertion into live streams and downloaded content as well as on-demand streams.

Instream has experienced strong demand from publishers. Since the launch of the Publisher Beta in July, Instream has brought on more than 50 Instream affiliates with high quality content in the following categories: Entertainment, News, Sports, Autos, Careers, and more. Collectively, these affiliates deliver more than 100 million video streams per month and Instream anticipates total monthly volume of more than 500 million monthly streams by early 2006. "We are excited to be part of the Instream network -- the integration was quick and easy and we were able to earn revenue immediately," said Eric Ralls, President at Rednova, Inc.

Since the launch of the Advertiser Beta in September, Instream has been embraced by major brand advertisers, and has already run several campaigns. In addition, Instream has more than a dozen other advertiser campaigns planned for Q4 2005 and 2006.

"Video advertising has become an important part of our clients' digital media strategy. We are excited about the growth in high quality managed video advertising inventory such as that amassed by Instream," said Christine Peterson, Media Supervisor at Carat Fusion.