Stephen Speicher on Engadget writes: "Imagine, on the other hand, if YouTube had placed an advertisement before that clip and paid Judson [the clip's author] for every time that clip was watched. Take this a step further. Imagine if you, as a website owner, were also given a cut of the advertising revenue every time someone watched that clip on your website . All of a sudden you've got a system whereby quality content owners are eager to submit their work and websites have an incentive to find the best quality clips to feature on their sites. It's the elusive win-win-win."
And you know what? If advertisers uploaded their spot on YouTube (and many already do), and if bloggers running that spot on their sites got paid for each unique visitor who viewed it, suddenly you would have a system that could rival Google's new video ad offering.
Update: A reader points out that Revver is doing just that.
YouTube Looks for Ad Model
Forbes: YouTube Burns $1M Monthly