The bit about making elements in video clickable. I don't know if this is automatic detection or a manual process, but either way, ad targeting within video would be pretty phenomenal.
"I want to watch the rest of this video" vs "I'm going to click on this toaster and see special offers for toasters"
Seems like either the video will be so boring people will want to escape via adverts, or the video will be interesting and no one will click on 'ads'.
Perhaps I'm missing something.
It seems like cool technology, but a bad product. I wouldn't invest. Go Justin.tv :)
Aside: the other startups in the challenge -- the ones the didn't get a lot of votes (apparently the voting has turned into a popularity contest) look both interesting and promising. Their founders may not be in their 20's, but I would invest in them over Ooyala and Justin.tv -- especially Commerce360.