Future of YouTube and Google

On the Google Blog today they reveal more details on the Google Video & YouTube integration:

YouTube, as we've stated previously, will remain an independent subsidiary of Google, and will continue to operate separately. Google will support YouTube by providing access to search and monetization platforms and, when/where YouTube launches internationally, to international resources. YouTube co-founders Chad Hurley and Steve Chen and the rest of the YouTube team will continue to innovate exciting new ways for people to "broadcast themselves."

It sounds like they will be allowing YouTube to grow on it's own just as they did with the Blogger acquisition a few years back, but the goal is clear. Include YouTube video in Google search results and find a way to show ads and monetize the traffic. In the same post Google refers to a new Adsense test with Warner Music Group and Sony BMG Music Entertainment where they will provide ad supported video content from Warner and Sony to a select group of web publishers for display on their websites.

It will be interesting to see what ad format dominates the video revolution. Will it be pre-roll, post-roll, small screen or something else?