Here’s further evidence that professionally produced video content is becoming a big business.  According to the Diffusion Group, ad rates for professionally produced video is in the $30-$40 CPM range.

Check out this Silicon Alley Insider article for more.

I’ve recently discovered the blog Online Video Watch, which doesn’t an excellent job keeping tabs on the latest developments in the online video world.   I particularly liked this recent post, which focuses on the migration from user generated content to professionally produced content on the web.

Now, I don’t think UGC is going away anytime soon. In terms of economic value, though, professionally produced content that is polished, smart, and sophisticated will have an edge.  This is particularly true when large brands are concerned, as there is an even greater incentive to protect their core brand assets.

According to this NY Times article, Lorne Michaels and NBC has decided that Jimmy Fallon’s debut as host of Late Night will happen online.  Instead of starting off on television, and potentially have a rough start like Conan did when he began his current tenure, the network thinks that putting Jimmy online will give him a chance to find his style and ease into his new role.  It’s expected that the segments will be in the five to ten minute range, and will be published to the web every night at a set time.

Clearly, this is more evidence that video on the web is quickly becoming established as a viable medium that major brands and media companies will continue to leverage more heavily as time goes on.

This is NYTimes.com article is really exciting for a number of reasons:

1. A financial model to demonstrate ROI for web video content has not happened yet, and this could be an answer.
2. Distribution through AdServing means not needing Editorial involvement to syndicate web video content to where the audiences are.
3. Major Talent and financing being put behind the development of original, short-form web video content.

We’ll be watching!