Latest news is: Google is now testing in-Stream Video ads:
Ad creative will be less than :30 and made skippable for users. Publishers will be able to select which videos to monetize, and track their performance using AdSense. Publishers can also choose where the ads will appear within the videos. Akin to standard AdSense deals, ad revenue will be split between the website publisher and Google.
Seems like they’re really moving into video ads in many ways now.