Serving as its chairman, Young plans to bring his experience in online advertising to help differentiate DBG from the growing horde of digital studios.

"DBG is fast building a name as a high-end broadband concepting, production and distribution company," Young said in a statement. "With my experience in the world of online advertising coupled with the production chops DBG brings to the table, we've created a production company that encompasses the whole broadband experience."

Headquartered in New York City, DBG was founded last April by former HBO and VH1 writers and producers.

"It's not just about great content. It's about how a show lives, where it lives and proving success," Young added. "We cover all of that."

Young co-founded Web video ad startup Klipmart in 1999. In mid 2006, DoubleClick purchased the online video ad and management solutions company. Young, then CEO of Klipmart, was named executive vice president of rich media for DoubleClick.

Joining forces with DoubleClick gave Young and the Klipmart team the opportunity to combine the management and measurement of all rich media, display and search channels, providing customers with a single source of technology, service and reporting.

Since 2006, Young has managed the Klipmart integration with DoubleClick and grown the DoubleClick Rich Media business into a top rich media vendor.

Bypassing the traditional Hollywood system, digital studios are emerging left and right to fill the Web's huge demand for original video. Ex-Disney head Michael Eisner arguably started the trend with his Vuguru production firm, which officially launched last March and financed the Web series "Prom Queen."

Then in April, with backing from Silicon Valley VC giant Sequoia Capital, FunnyOrDie.com was started by Ferrell and McKay. Last month, the site raised $15 million from Sequoia and other investors.

Seeking to branch out beyond comedy, in late October Ferrell and McKay got together with skateboarding icon Tony Hawk to launch an action sports destination, ShredOrDie.com. The site features action sports videos, with an emphasis on skate, snow, surfing, BMX, motocross and action sports culture. Creative Artists Agency orchestrated the deal on behalf of Tony Hawk and FunnyorDie.com for the creation of the site.

My Damn Channel, a digital production studio recently launched by former MTV and CBS Radio executive Rob Barnett, last month reached a content partnership with MySpace. Per the deal, My Damn Channel got its own branded channel on MySpace and MySpaceTV, featuring original work from comedians like Andy Milonakis and Harry Shearer, filmmaker David Wain and music producer Don Was.

Earlier this year, United Talent Agency and Spot Runner--a digital agency partly owned by WPP Group--opened 60Frames Entertainment, a studio for digital entertainment from established actors and directors.

Hollywood producer Albie Hecht has been busy building his digital production studio Worldwide Biggies, and last month secured $9 million in funding from top investors including NBC Universal, which also agreed to a first-look distribution deal.

Also on the rise is BermanBraun, the six-month-old venture from former Paramount Pictures president Gail Berman and former Yahoo Media Group head Lloyd Braun. BermanBraun, which already boasts a multi-platform strategic alliance with NBC Universal Television, recently signed an agreement giving Pepsi a first look to support and sponsor original entertainment content that BermanBraun develops for online platforms.

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