Indie Movie Distribution 2.0?
In short, these guys made a film. They went well over a $100k in debt and couldn't find a distributor. So they put their film up on YouTube and ended up striking a deal with film-review/social networking site, Spout (they sell themselves as MySpace meets NetFlix). Spout gives them $1 for every person that signs up with the site after being referred by them.
Hopefully, the $1 price has been carefully set, so that even though there'll be a lot of people who sign up just because they want to help out these guys and may never go to the Spout site again, the percentage of users who do come back are worth it eventual revenue. The conversion ratio may be higher than usual though given that the users who find this movie will be really into movies anyway (Spout's target customer.) The Spout design on first look doesn't seem bad, so maybe they have a shot. Looks like Spout could do with the bump in traffic too. They're starting to dip (Compete data below) and we do live in an age where valuations are done by user count and they're probably looking for more than 50K users. (TechCrunch spiel on the site)
Update: I just saw the first 5 mins of the movie; not bad I guess, but I doubt I'll make it much further today.:)