Found this article, and thought it exemplifies YouTube. (article)
As far as a biz model goes, I hope Google allows users/content providers to participate in an ad scheme.
What I think it should look like:
For user generated clips, and any video under 10minutes, there should be a 2sec banner Ad before and after the video clip. (A low margin type of Ad, but not intrusive by any means.)
For studio generated clips, or any video longer than 10minutes, the option for a 15sec commercial type Ad should be available. (This type of Ad would command more of a premium when viewed.)
Of course content providers must have the option of having the Ads within the videos.
Imagine a ‘nobody’ produces a video, and is able to make a living off this. With over a million page views, on some popular videos, this is very very possible. And would most definitely assist Google’s bottom line.