1 - Why does everything have to be ad-supported? Certainly not social networks.
I don’t think social networking sites lend themselves to advertising. The NYT has a story about a lackluster P&G/Facebook campaign. I’ve covered this theme on this blog, but in essence, social networking is about communications, and every other communications form on the Web - be it email, message boards or chats - have not proven to be cash cows with regards to advertising. Social networks will be no different.
2 - Monetizing video streams awfully reminiscent to monetizing search queries.
In 2000, I worked in the search engine space. We all knew that a search query was a valuable action, but we didn’t know how valuable. Google borrowed GoTo’s model and the rest is history. While search conveys intent, video (and content in general) conveys interest.
I think video as a business model in 2009 will be awfully similar to 2001 when search as a business model took off.
It’s a matter of time.