Cynopsis Digital reported that former Google engineers and product managers are quietly working on a new video start up called Ooyala currently in closed beta that has piqued the curiosity of Silicon Valley bloggers.

Details are very sketchy so far, but the company seems to have had no problem attracting funding to hire software, video processing and Flash engineers in Mountain View and salespeople for planned offices in Los Angeles and New York.

This helps support my belief that broadband overbuilders will be the new cable television providers (plus so much more) starting in 2009.