AOL gets YouTube fever

YouTube is certainly a frustration for traditional media players. YouTube does not make content (it's user-generated content); yet, it is the biggie in the online video category, with more than 100 million video views per day. In fact, even Internet behemoths, like Google, Microsoft and Yahoo, can't seem to do anything about it.

But, literally every day, the competition is getting tougher. A new entrant: AOL Video.

At the core, AOL Video is a search engine. Interestingly enough, it's not an AOL-only search system. For example, the company has cut deals with companies like Viacom. There are also tools for users to create their own content.

AOL Video is the result of savvy acquisitions, such as for Truveo and Singingfish. Basically, AOL has some next-generation technologies – for the next big thing in search; that is, video search.

What's more, AOL is going to try a variety of business models, such as advertising, subscriptions and renting. AOL Video also goes beyond the desktop and allows for videos on cell phones and handheld devices.

On Wednesday, AOL will announce some major changes to its business (perhaps going towards an ad-model). As for AOL Video, it's certainly a very good start.