Note: The Skinny blog is written by Rick Smith, editor and co-founder of Local Tech Wire and business editor of

DURHAM, N.C. – Digitalsmiths, the startup that aims to monetize video archives, is moving into new office space with some new colleagues joining the venture.

The Triangle-based technology company has acquired Massachusetts-based Gotuit, expanding its work force to more than 60, as it opens a new headquarters in Durham’s American Tobacco Historic District.

Financial terms of the Gotuit deal were not disclosed.

Digitalsmiths, which is backed by Cisco Systems, 406 Ventures, The Aurora Funds and Chrysalis Ventures, will maintain an office in Boston. Digitalsmiths works with clients to monetize video with sophisticated search and related technology.

Mark Pascarella, CEO of Gotuit, will continue to be involved with Digitalsmiths “during the transition” and also joins the company’s advisory board, Digitalsmiths said.

Local Tech Wire talked with Digitalsmiths Chief Executive Officer Ben Weinberger about the acquisition and what it means for the company.

What are the key differences in your technology that made a business case for the merger?

Digitalsmiths is the clear leader in video metadata. It’s important to have a holistic industry view of how metadata can drive relevancy and connect consumers to content. Through this acquisition, Digitalsmiths combines powerful metadata product capabilities and expertise in news/sports, and television/film. The Company also accelerates its ability to offer more personalized search and discovery products based on the broadest and deepest set of video data available about a movie, sports broadcast, TV show or news program.

Were you competitors? How did you become aware of Gotuit?

As you have seen recently with the consolidation in the advertising space (Tremor Media and Scan Scout as an example), there are great advantages to combining two companies to increase your scale and capabilities. Both Digitalsmiths and Gotuit see tremendous value in combining their unique technologies and products to create the clear leader in the video metadata space.

The market has clearly stated its desire for rich metadata to enhance the way video content is managed, presented, consumed and monetized. Both companies recognize the opportunity to capitalize on this real business need by creating the broadest set of technology and expertise available.

Going forward, how does this position Digitalsmiths in the marketplace?

The personnel of the combined companies have more knowledge and expertise focused on creation and application of video content metadata than anyone can bring to the table.
Combination of broadcast metadata capability and library/archive metadata capability

Emergence of a true category leader with the most meaningful set of intellectual property in the metadata space – 35 total patents pending or issued, dating back to 1996.

Digitalsmiths can now offer broadcast metadata tagging capabilities- i.e. a sports/news broadcast where metadata can be authored live while the video is airing. Digitalsmiths can also now offer the most efficient means of human metadata creation enhanced with automated methods.

The resulting offering will address four key areas:

1. Broadcasters/Programmers: The combined solution enables precise access to content inventory (both full assets and individual scenes) and immediate delivery of content for B2B and B2C customers.
2. Cable Operators: The combined solution allows cable operators to leverage programmer data to provide consumers a greatly enhanced user interface for discovery/search, recommendation and contextual advertising.
3. Consumers: The resulting products and capabilities of the Digitalsmiths-Gotuit combination will deliver on the ever-growing consumer demand for personalized and relevant content.
4. Advertisers: The data sets created by the combined solutions will deliver on the promise of a key-word economy for video content, providing the highly targeted inventory at the scale brands require

Mark Pascarella, CEO of Gotuit, will continue to be involved with Digitalsmiths “during the transition” and also joins the company’s advisory board, Digitalsmiths said.

Moving into the American Tobacco complex adds to the excitement of the week for Digitalsmiths, according to Chief Technology Officer Matt Berry.

“We feel there are some tremendous opportunities in the commercial market space and have always had our eye on ATC,” Berry said. “We felt like the timing was right in terms of being able to expand our operations into ATC. ATC brings a certain culture to our employees that you get no where else in the triangle and will allow us to recruit top performing employees.”

Get the latest news alerts: Follow LTW at Twitter.