Led by Steib's strategic ventures unit, NBC Universal in September created the National Broadband Company, or NBBC, to distribute video programming to various Internet sites in direct competition with Google.

"We are pleased to have Michael Steib join the Google team to help us work with advertisers to create effective, measurable video advertising," a Google spokesman said Thursday. "As we continue to grow our video ads business, Michael's experience in Internet and media will help us succeed." The news was first reported in Paid Content.

The Google spokesman said no official title has been given to Steib yet, but that he will lead a new ad sales team under the direction of Tim Armstrong, Google's advertising sales head.

Google's ambitions to compete in the burgeoning video space were made clear late last year when it acquired video-sharing startup YouTube for $1.65 billion.

"This is about Google looking for the right people to develop a strong video syndication model," said Matt Wasserlauf, CEO of online video sales network Broadband Enterprises. Broadband Enterprises is one of several start-up syndication companies, including Brightcove, Roo, and Revver.

"It's such a new area--there aren't a lot of people who have experience creating working video syndication models," Wasserlauf added.

NBBC was launched not only as a video aggregator, but as a syndication service designed to distribute video programming--content from NBC's networks and local stations as well as from other companies--to other Web sites, accompanied by advertising.

At NBBC's launch, then-president of the NBC Universal television group, Randy Falco, said the inspiration for the new unit came directly from the viral success of the "Saturday Night Live" sketch "Lazy Sunday" on video-sharing sites like YouTube.

Steib's departure follows Falco's move in mid-November to replace Jonathan Miller as head of AOL. (Also in November, David Zaslav, president of NBC Universal Cable and Domestic TV and New Media Distribution, announced his plans to join Discovery Communications as its president and CEO.)

At the moment, there are several key differences between Google's approach to video syndication and NBBC's. For one, NBBC reportedly has tended to take a larger cut of the ad revenue than Google. Also, NBBC is presently avoiding user-generated content in favor of more professional offerings, and it is not distributing video content to little-known blogs and Web pages.

NBBC now has about 45 full-time employees, led by general manager Brian Buchwald. The unit, still officially in beta, presently has roughly 150 partners--including Hearst, A&E Television Networks, The Horror Channel, Vibe Media Group, CNET Networks and Forbes.com. Advertisers that NBBC is working with include JPMorgan Chase, Procter & Gamble, Sheraton Hotels & Resorts and Toyota Motor Sales, among others. In late December, NBC Universal promoted Jean-Briac Perrette to president of digital distribution, where he has been tasked with coordinating the distribution of NBC Universal's television content across digital platforms. Reporting to chief digital officer George Kliavkoff, Perrette is now the primary liaison between NBC U and the major Web portals.

This news story is important. I recommend that everyone read it.