NetStreams Inc., an Austin-based company focused on distributing high definition video and audio over standard IP networks, has raised $18 million from Austin Ventures in a Series B financing. Austin Ventures also funded the Series A found.

The Company claims that its DigiLinX™ IP Audio, Video and Control system is the first distributed A/V system to deliver uncompressed, high definition audio & video to multiple rooms throughout a home or commercial facility all over a TCP/IP network. While we haven’t tried the system, it seems pretty neat, and may be a formidable competitor to in-home audio distribution companies such as Sonos.

With record sales this past quarter, Clark Jernigan, the venture partner for Austin Ventures that spearheaded the investment, says that “The market for networked audio/video distribution in commercial and residential facilities is exploding, and NetStreams is the recognized technology leader in IP Audio/Video distribution.” Given the recent announcements about on-demand movies from Netflix and Apple, HD-Radio, and the shut-down of analog TV’s in 2009, this should be a great year for anyone that enjoys digital entertainment from their home.