At the Web 2.0 Summit, Ken Auletta (the New Yorker) led a discussion with Joel Hyatt (CEO of Current TV) and Evan Williams (CEO of Twitter).
When asked "How will Twitter make money?" Evan first drew a blank and then steered the conversation to how people are using Twitter in new and cool ways. I guess Mark Zuckerburg (Facebook) set the precedent for this question. Where did all the capitalists go?
Joel has an old-fashioned revenue model (his words, not mine) where Current TV licenses content to cable companies, for distribution to households. Joel also appears to have 20 years on Evan, so I guess things like money and revenue are more top of mind for him. :-)
Current TV has user-generated content as well as user-generated ads. Viewers in fact prefer viewer-generated ads. Despite this being a panel session about media, there were several technical glitches in pulling up the video segments during the panel. (Kinda ironic) Toyota sponsors Viewer Created Ad Messages (VCAM's). The one that was shown for the Prius was quite good and better than most of the Prius commercials I've seen. Several other large companies, including Loreal, have sponsored VCAM's.