Funding for online video sites has been on the rise. It nearly doubled between 2006 and 2007, from $266.9 million to $460.5 million. In just the first quarter of 2008 alone, over $217.3 million was raised.

Also rising has been the amount of ad dollars going toward online video: eMarketer reports a 55.9 percent increase this year over 2007.

In a report in March, the now-defunct Bear Stearns predicted that the sector would continue to expand.

“We believe that video will be at the very heart of the next five years of Web evolution.” 

Online video might very well be recession proof, but it is not stupid proof.  So sure, some companies and management teams will survive and dare I say: thrive. But a lot of them will also fail because there’s been a high dose of st00p1d in the market, as well.

See our 20 Dumb Things About Web 2.0 here.