According to GigaOM, video creators will be able to push their own ads into content viewed on iOS devices. Apple will act as an ad network, too, so video publishers don’t have to create their own ad content if the don’t want to.
Since the service will give producers and distributors a way to insert their own ads into video streams, it may become a tool for enticing broadcast networks into bringing more content to Apple TV. Apple’s current rental and purchase model doesn’t generate as much revenue for networks as commercial advertising does, so they may see the new iAd feature as a way to bring in even more cash.
Apple is said to be planning on launching its iAd for video service in early 2011. The company hasn’t confirmed the reports, or even if it’s working on a video iAd service.