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Server-side playlists cover a wide range of scenarios: Internet radio and television stations, regional and custom advertising, fail-safe streaming, and content control. You can use server-side playlists to insert advertisements before, during, and after content, to switch seamlessly between alternating content and to provide a structure that defines how users receive multiple pieces of content. For example, you can use server-side playlists to create a user experience similar to that of a radio or TV station. Controlling your playlists with the Windows Media server enables you to make changes to a playlist during a broadcast.
Because playlists are a single file or directory, you can manage the resources on your server more easily. Playlist content can range from a list of Web pages to live encoder feeds to stored files.