Check this out
It doesn't look like much of an article does it, pretty unassuming and although it mentions 2 powerhouse movers (Google + Seth MacFarlane) it belies how massive a change to online video this is.
Sure we've had Joost come along, then the network branded sites such as Hulu but this new project is as big a change as the "made for tv movie".
Family Guy if you've never watched it is as hot as The Simpsons was before they went mainstream....hopefully Family Guy wont be 'dumbed' down for mainstream but it might be.
The fact that he is producing content "just for the ads" is ironic in that it's what TV is and has always been about but this is a radical change for online video. And the best part is Cavalcade doesn't even have to pay for distribution....content owners are going to lovingly host it with the hope of drawing viewers to their sites for their other content.
I think the last paragraph sums it up
"Cavalcade could also have a lasting effect on how writers and producers approach video content in the future. If Google and McFarlane's experiment in bite-sized, highly distributable content pays off, it could lead to a change the way writers think about and structure the stories they tell. "
P.S. interesting article i just came across about Hulu - projected for between $45-90 millions dollars this year.