The cream of digital media gathered at New York's Cipriani restaurant last week for the Webbys, otherwise known as the online Oscars, to see winners including Google Earth, MySpace.com and ... National Public Radio.

NPR's already a powerhouse podcaster and it plans to add broadband video in the second half of 2007.

Yes, 36-year-old NPR scooped up five awards, more than any other broadcaster, reward for sweeping changes that have transformed it from a cash-strapped public broadcaster to a bona fide digital-media force to be reckoned with. Next up? Video.

Despite its history as a publicly funded, largely commercial-free radio network, it's also one of the few traditional-media companies to figure out how to convert podcasts into ad dollars.

NPR's already a powerhouse podcaster -- and is possibly the biggest media organization in the nascent audio-download business, with 52 shows on Apple's iTunes and 313 titles in its online podcast directory. Popular podcasts include "All Songs Considered," "NPR Movies" and "NPR Technology."

"The endgame is pretty clear. We do audio very well, and we're going to exploit it to our advantage. We are looking to experiment in multimedia-to round out the offering beyond our core advantages in domestic news-to expand out globally from news to music," said Ken Stern, NPR's chief operating officer. "It is what public radio does. It creates a meaningful presence in the world."

But not everyone sees the podcasting and its digital push as a positive. NPR's 700 affiliate radio stations are engaged in an ongoing debate about the potential negative effects of digital ventures on local listenership.

One concern is that fewer people will be listening during on-air funding drives if more of the audience is downloading podcasts of popular shows.

Mobile-phone delivery also is being built with the expectation that it will have to accommodate sponsors. "When we've defined the user experience, that's when we'll add sponsors to the mix," Mr. Truitt said.

NPR's in-depth audience research often helps seal the deal with marketers. One fact: Eight of 10 listeners say the sponsorships have an influence on whom they do business with. Mr. Truitt talks of the "halo" effect on companies that come on air to support NPR. "It's not ad speak. It is not just a warm and fuzzy notion. It can mean good business."

The public broadcaster is attracting interest among marketers that otherwise might not have considered NPR as an ad vehicle but whose iTunes experience has brought them to the podcasts. "The digital interests have spurred on-air business. People see us on iTunes, and then they've thought about it. That's created opportunity, but a lot of those clients don't have a radio budget. We don't want the conversation to end if they don't have a defined radio strategy," Mr. Truitt said. Consequently, a flight on NPR is unlikely to be funded from a traditional radio budget; instead money comes more often from print and cable budgets.