JumpCut, reviewed here by Michael Arrington several months ago, announced a licensing deal for its browser-based video editing software with FoxAtomic today. FoxAtomic will use Jumpcut to enable online auditions for its remake of the classic comedy “Revenge of the Nerds”. It is the second such deal for JumpCut, following a contest that allowed users to remix the trailer for “A Scanner Darkly” (which, by the way, is an excellent movie).

While there is no shortage of video creation and editing in the world right now with desktop software, Jumpcut’s tool has its advantages to marketers who’d rather keep users on their sites to edit video. Whether or not users would prefer this, I don’t know. But if the browser based technology is good enough and, as discussed in last week’s Bix post, when the prizes are enticing enough, participation is bound to follow. And with participation begins a virtuous cycle for a company, in which users beget deals which beget more users which beget more deals…

Two deals hardly makes JumpCut’s success a given, but seeing any site in the online video space generate some revenue is newsworthy. JumpCut’s different twist in this crowded space certainly gives it a leg up in the race to sustainability.