There may be some 135.5 million Americans watching online video, but no one is cashing in on the phenomenon. Even with 89 percent growth this year, eMarketer predicts that online video spending will represent just 3.6 percent of the Internet ad pie, or $775 million. By 2011, the Web research firm expects the market to expand to $4.3 billion, but that would still only be around 10 percent of the greater market. Web video has a long way to go before it rivals search marketing, much less the huge numbers racked up by television advertising. Judging by its numbers, …

Cyber-slacking off at work? You're not alone, according to a Reuters report. Citing various studies, the report says that employees on average spend about aone-fifth of their time at work not working. The Web is by far their favorite (and easiest to access) time waster. In many ways, it's the ultimate temptation, says Patricia Wallace, a professor at Johns Hopkins University in Baltimore. A recent survey from the firm Salary.com showed that six in 10 workers admitted to wasting time at work, while 34 percent listed the Web as the leading time waster. Boredom, long hours, being underpaid and …

Software architect Vint Cerf, considered one of the founding fathers of the Internet, believes that the Web, for all its chaos and efficiency, is a reflection of society. And he says it should not be regulated like other media beyond what's clearly illegal (i.e. sexual predators), because that would place the Net on a "slippery slope" toward limiting freedom of expression. "If it's not illegal, it raises a rather interesting question about where you do draw the line," he said, which is why self-regulation should be encouraged. Cerf's comments come after the UK's Conservative Party suggesting curbing the …

The much-hyped online joint venture between News Corp. and NBC Universal that will stream full episodes of hit series such as "The Simpsons" and "My Name is Earl" finally has a name: Hulu.com. An invitation to get on the beta waiting list went live today. "Why Hulu?" wrote the venture's CEO Jason Kilar on the site. "Objectively, Hulu is short, easy to spell, easy to pronounce, and rhymes with itself. Subjectively, Hulu strikes us as an inherently fun name, one that captures the spirit of the service we're building." Kilar -- named CEO of the stand-alone company NewSite …

The press, still flush with love for Facebook, has declared that social networking is the Next Big Thing for business, too. Thousands of business professionals now use Facebook for business; targeted professional groups are sprouting up, too. But it's not just Web professionals online. Doctors are congregating at sites like Sermo.com to share information about their various specialties, which in some instances can even lead to diagnoses. INMobile.org is a new social network for the wireless industry. LinkedIn, of course, is the granddaddy of professional networking, although it's used more for growing contact lists and for job recruitment …

Hackers have unlocked Apple's iPhone, which means they've discovered a way to open up the $500-$600 device to any wireless network. Bad news for AT&T, which had to fight hard for an exclusive iPhone contract that runs through 2009. It's not so exclusive anymore. In fact, 17-year-old George Hotz, who claims to be the first person to successfully unlock the device, has just joined a cell-phone refurbishing company called CertiCell, which plans to sell unlocked iPhones. AT&T will no doubt sue the company, but if Hotz and co. can clear up the murky legal air surrounding the practice …

Congress may be mulling over the matter, but the federal government is unlikely to allow state and local taxes on Internet service--at least for a while. While speculation in Washington was rife that Congress would let the current Internet tax ban expire on Nov. 1, a glut of new bills on the horizon make that unthinkable. One new bill proposed by Senators Tom Carper (D-Del.) and Lamar Alexander (R-Tenn.) aims to extend the measure through 2011. Others would suspend the issue indefinitely. It boils down to a state's-rights issue. Congress has often taken a hands-off approach to state …

The subprime lending fallout will soon affect certain Internet companiess. Remember the ubiquitous ads for Experian's LowerMyBills.com? Indeed, lending companies are now having to drastically cut back on spending aimed at consumers with lower credit; in fact, some analysts suggest the fallout heralds the end of cheap credit altogether. This will affect Web advertising. According to Nielsen/NetRatings, some 16% of online spending comes from financial-services firms. In July, mortgage lenders Countrywide, Low Rate Source, Experian Group (including LowerMyBills.com) and Privacy Matters were among the top 10 biggest U.S. advertisers on the Web. The subprime fallout could …

What's the problem with successful television programming today? "South Park" creator Matt Stone says: "If I'm overseas and have to get an episode right away, you have to go to an illegal download site." Comedy Central parent Viacom is much slower to the draw than fans in uploading clips of the show. It's an irony that a cartoon series that started out as a viral phenomenon before almost any existed has had its presence reduced by the parent company. It's also why an interactive distribution plan was made part of a new four-year contract for Stone and co-founder …

As the housing market continues its collapse, the tech sector is starting to look like "somewhat of a safe haven," says Standard & Poors' analyst Scott Kessler. Since the stock market's 387-point drop on Aug. 9, the tech sector hasn't been impacted by the sustained slump. But a safe haven? "Money has got to go somewhere," says David Geltner, professor and director of MIT's real estate program. Indeed, there is a ton of cash out there--particularly among large caps, and media firms, especially, are investing in online advertising. So far, Wall Street seems to approve. …