Here is another example of how advertising works its way into video no matter what the medium happens to be.

At www.moviefone.com/shorts, visitors can view and rate short films. I think that initially there are 13, but more are planned because Moviefone is putting out a general call for submissions to a "summer short film contest." They include several comedies previously seen only at major offline film festivals like Sundance and Tribeca.

America Online has struck a deal with Ford's Mercury Milan to sponsor all of the short films for at least the next 12 months. Its placements will include branding for its Milan sedan on AOL's media player, a :15 pre-roll video ad, and other executions throughout the AOL Network.

It appears that everyone gets what they want. amateur, up-and-coming, and established filmmakers get a shot at connecting with a wider audience. Moviefone builds a community at their site and receives some revenue. AOL's portal gets a fresh supply of video ad inventory that they can cross-sell with their other inventory. In a ROI-driven marketing context, Ford Motor Company can target young and independent consumers who are seeking something different. Presumably, John-Q public gets free access to video content that might not otherwise be seen.

I love the sight of video on the Internet -- it looks like capitalism.