Next year, according to Gigaom, Apple may begin incorporating video into streaming video content as part of the iAd infrastructure. Currently iAds only work in iOS applications on the iPhone, iPod Touch and iPad. While many of these incorporate video, an iAd is not available to be a part of video content as you might see in Hulu. A system like Hulu allows for ads to be played at various points during the video but they are not part of the video. That means if you watch the program today you will see one set of ads and if you watch next week you may see an entirely different set of ads. It's believed that the service would initially be available on only the iPhone, iPod Touch and iPad; but could become available on the Apple TV. That could open up many new possibilities, including the possibility of Apple having a subscription service for video; something that it's rumored Apple has been investigating. [ad#468x60 Banner] The networks don't mind selling their TV shows and they may all eventually come around to renting TV shows; however network revenue mostly comes from advertising. Many believe that until Apple can show the networks a means of reaping quality ad revenues from streaming content via HTML or QuickTime it seems unlikely that Apple will be able to convince them a subscription service is the right way to go.
Gigaom's sources seem to indicate that we could hear something as early as 1st quarter next year, possibly during Apple's annual Winter event. iAds were introduced back in April of this year, so it could be Spring before we hear something new about iAds and possibly Video iAds.