San Francisco-based Internet television network Revision3 produces those edgy video programs Diggnation, Tekzilla, iFanboy, and The Totally Rad Show. Revision3's programming is popular.

It also doesn't hurt that Revision3 distributes programming  across Apple iTunes, BitTorrent, on DivX, YouTube, and PyroTV. What’s that done? The startup served up more than 25 million shows to fans in 2007.

Revision3, formed in 2005, is the creation of Jay Adelson, David Prager, and Kevin Rose, founder of Digg.com.

Revision3 CEO Jim Louderback spoke with Red Herring about the company’s fast rise.

Red Herring: What’s your take today on TV viewers going to the Internet?

Jim Louderback: The mix is changing. Whereas people might have watched 6 hours of television, media choices are expanding and there are more and more ways to watch video. More of those hours will be spent watching Internet video. I also don’t think traditional TV will go away.

RH: Is there something you can do to edge into television?

JL: I think we just need to keep continuing to do what we do best--provide great content about what people are passionate about. We’ve announced a bunch of deals with distributions partners.

RH: What are your production costs per show?

JL: Our cost to produce it is probably 10 percent of what it would cost on a major TV network. We make sure they reach only the people they want to reach.

RH: How is the programming changing?

JL: There’s niche stuff targeted at people’s passions—that’s the world I see evolving. For us we do stuff about things people love. It’s just the stuff that people really enjoy in their lives.

RH: Is social networking coming into play for Internet TV?

JL: It’s hard for me to quantify it, but once we added embed codes our traffic went up like 30 percent. Adding the ability for people to imbed it was huge for us. I can’t say the entire 30 percent came from that, but it was significant.

RH: Tell me about the evolution of your programming.

JL: A year ago we were all about 45-minute shows. A number of shows are shorter now, in the 10-minute range. Techzilla is now daily, under 3 minutes.

RH: What is your revenue model?

JL: Our revenue is through product placement and sponsorships--hosts talking about the products. We will augment our existing ads with video ads. Middle and post rolls. It’s very early in this world. I think a window blind pull-down is a great idea.

RH: Are you seeking funding?

JL: We raised $8m in July. It’s more than enough to reach profitability. We’re sitting pretty.