Digital Media

This is sort of interesting. MTV Networks, which certainly has a lot of video content out there on the Web, on Wednesday released the results of an internal study to determine what kinds of advertisements are most effective and online-friendly matches for short-form online videos.

The conclusion? "Project Inform," the MTV survey, found that a five-second-long "pre-roll" ad in advance of the clip, combined with ten seconds of a semi-transparent ad unit that takes up the lower third of the video (and starts about ten seconds in), makes up "both the most effective and the most audience-friendly ad product for short-form online video," according to a release.

MTVN calls this the "lower one-third product suite." It was tested against two other ad packages, the "sideloader," which combines the five-second pre-roll with an ad that rolls out of the side of the video window; and a traditional 30-second pre-roll before the ad.

So, obviously, that's a limited number of options and certainly doesn't reflect the full range of possibilities for online ads. But it was thorough: Project Inform ran consumer survey tests across about 50 million video streams on the Web properties for media brands like MTV, Comedy Central, and Nickelodeon.

"Short-form online video consumption is exploding, but there's still a lot of confusion among marketers over which ad formats deliver for brands without compromising the user experience," Nada Stirratt, executive vice president of digital advertising at the Viacom-owned MTV Networks, said in the release. "By exploring the viability of new ad products around short-form online video, Project Inform provides the type of insights crucial to creating the innovative, custom solutions that this marketplace needs."

The catch is whether even the highest-performing varieties of online video ads still really rake in the dollars. Online video has been notoriously difficult for companies to monetize, but that's in part because the first variety of video to gain traction on the Web was amateur, user-created content (do top-notch advertisers really want their message next to a video of a squirrel on water skis?) and also because traditional, TV-style ads don't have the same impact alongside shorter Web clips.

There have been some promising signs, though. Video portal Hulu has investigated a couple of experimental video ad formats since launching last year, and has had good news to report on the advertising front--like that its inventory sold out a month after its public debut.

Viacom isn't a member of the Hulu joint venture, which now consists of NBC Universal, Disney's ABC Entertainment, and News Corp. But a limited number of episodes from Comedy Central talk shows "The Daily Show with Jon Stewart" and "The Colbert Report" started playing on Hulu last year.

Viacom's MTV Networks has brought some of its television content to Netflix's library of streaming online video, the companies announced Monday.

Yaaaaaaay! SpongeBob is taking over your Netflix account!

(Credit: Nickelodeon)

The offering consists primarily of kids' shows from the Nickelodeon network, with select seasons from the shows "iCarly," "Blue's Clues," "Dora the Explorer," "SpongeBob SquarePants," and a handful of others, as well as the first nine seasons of "South Park," the Comedy Central animated series that you probably don't want your kids watching.

Netflix's streaming-video service still very much takes the back burner to its DVDs-by-mail service, but the company has deals in place with TiVo, Boxee, Microsoft's Xbox, and some HDTV providers.

It's also the second streaming Netflix deal for Viacom, which licensed content from its Logo network last year. Viacom has also signed content deals with Joost (Disclosure: CNET News publisher CBS is an investor in Joost) and NBC Universal-News Corp. joint venture Hulu, which now runs episodes of Comedy Central's hit talk shows "The Daily Show with Jon Stewart" and "The Colbert Report."

One major player in the video world with which you probably won't see MTV Networks making a deal any time soon: YouTube. Viacom still has an outstanding lawsuit against YouTube parent company Google over infringing content.

Update at 7:59 a.m. PST: A RealNetworks representative quashes a rumor about a RealNetworks-MTV joint venture.

The long-expected layoffs at Viacom, parent company of MTV Networks, have finally taken place.

According to an internal memo (first leaked to gossip blog Gawker), 850 positions have been cut. That amounts to 7 percent of the company's workforce.

"Our advantages and best efforts can't completely protect Viacom from the very serious and broad-based challenges of this economic recession," CEO Philippe Dauman wrote in the e-mail. "Viacom's long-term health will depend on our shared commitment to adapt, to innovate and to make difficult choices. To compete and thrive, we need to create an organization and a cost structure that are in step with the evolving economic environment."

A press release Thursday from Viacom gave a more detailed explanation: "The restructuring and write-down together will result in a pre-tax charge of $400 million to $450 million, or $0.42 to $0.48 per diluted share, in the fourth quarter of 2008. These staffing and compensation actions and write-downs are expected to result in pre-tax savings of $200 million to $250 million in 2009."

It's been common knowledge that Viacom layoffs were on the way, and the company had already canceled its big holiday parties this year, giving employees two extra vacation days in exchange.

In addition to MTV, Viacom owns BET Networks and Paramount Pictures. Its cable channels include Comedy Central, Nickelodeon, VH1, and Noggin.

According to a separate post on Gawker, the New York office for MTV-RealNetworks joint venture Rhapsody America is rumored to have closed, leaving 25 people jobless. RealNetworks spokesman Ryan Luckin said in an e-mail to me on Thursday that the rumor is false.