Overlay.tv, a service that lets users add links, images, and even other videos on top of Web video has a new API for developers to build applications on top of its technology. The company has also put out a new labs page where developers can promote their applications and see what others have built.
One of the early stars of the bunch is a special YouTube uploader built using Adobe AIR. It lets you upload videos from your desktop without having to use YouTube's Web-based uploader. Once a file is up and hosted on YouTube you can then create and design overlays right inside of the application, which compared to YouTube's annotation system is a little more advanced.
Another fun labs creation is a karaoke player that's been built into children's Web site Kidz Bop. Overlay has taken the site's existing player and added on-screen lyrics, which users can view at the same time they're recording themselves singing. It's also put together links to related sites and services that have been vetted as kid-friendly.
I still prefer VideoClix.tv's approach to on-screen overlays. The service is a little more subtle about the things that are added to a video, letting you view a video without the overlays, and only pulling them up when you mouse over the selected item. However, its solution is not nearly as consumer-friendly as Overlay.tv's, which with this platform will let any site or service tack on its functionality to existing video tools.