I've made the observation numerous times that people will ultimately opt for an ad-supported VOD model over a pay-per-view scheme.

Broadcast networks are selling some of their most popular shows on Apple's iTunes for $1.99, but a new study finds that most consumers would be willing to watch an ad if the sponsor picked up the cost of the show. And if that model becomes the standard, more would be interested in buying a video iPod.

The survey, which explored attitudes toward video iPods, found that 54% of respondents would be more likely to purchase an iPod if TV programs could be downloaded free of charge in exchange for watching a 30-second advertisement.

I think it is unrealistic that an advertiser would pay $1.99 for one ad insertion to one iPod viewer because that implies a hefty $1990 CPM. More realistic is that multiple ads would have to be inserted into the content, in a similar manner as regular linear operates.

Oh, and I recall writing about an upstart company called Ultramercial that forces you to choose: your money or your time.