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Re: YouTube Rolls Out Its InVideo Service to Select Partners
I use blip.tv for the embedded video on my web site which has a similar kind of overlay ad to what YouTube have just announced. With Blip.tv you can opt in or out of their advertising - so you can choose if you wish to monetize your videos or not. You can also do this on a video by video basis.
I don't find the overlay ads intrusive, unless they happen to cover some critical information at the time they appear - which isn't all that often. It's certainly better than pre-roll and mid roll ads - and I've never had a problem with post roll ads (in fact, sometimes I've watched a video right to the post roll ad just because I was curious to see what ad came up).