It was only a matter of time before someone created an online video-shopping marketplace. Mix together eBay and YouTube and you get Shopflick, a Los Angeles-based startup in private beta that wants to bring the art of video selling to the Web. Sellers can set up shop with their own page highlighting their store and the products they have for sale. Most of the information is presented in video format in Shopflick’s own buyer-friendly player that features a big “Buy Now” button. Shoppers can add comments to each item, share them, bookmark them as a favorite, or embed them elsewhere on the Web. We have 2,000 invites for TechCrunch readers (sign up here—the first 500 will be let in immediately and the rest over the next few weeks).

So far the startup has raised $1 million from angel investors in LA. But Shopflick has a heavy-hitter CEO in David Grant, the founder and former president of Fox TV Studios. Says Grant:

I think it can be an enormous business. Video selling is what television is. TV Commercials. People have tried to replicate video selling on television, which is a mistake.

The front page of Shopflick features a big video player that scrolls through featured items and could also become a prime advertising spot. Just like on TV, Shopflick plans on using its front page to promote items based on limited quantities or time. Shoppers can also browse by category, keyword, or tag. Most of the sellers—there are about 50 of them in the beta right now—are boutique shopkeepers, jewelery makers, or furniture designers from Brooklyn or LA.

Here is an example of a video by Uhuru, a Brooklyn furniture design company that uses sustainable materials:

Shopflick: Buy this product | Get your own Store Player

The site feels a little bit like what Etsy would be if it had video, except its sellers don’t focus on handmade goods. There is definitely an independent vibe. The site is geared towards women. It is heavy on hand creams, lingerie and kid’s clothes. But not the 50-year-old women in middle America who tend to watch the Home Shopping Network or QVC. Shopflick is going more for the hip 18-to-34-year-olds who live in big cities. Founder and president Patrick Yee says:

It is an $8 billion business on cable, but we are moving it from a linear model to an on-demand model, from a warehouse-QVC model to an on-demand user-generated model.

Shopflick does not hold any inventory. Like eBay, it just matches buyers and sellers, and collects listing and transaction fees. The first six months it will waive listing fees, but it plans to charge $10 to $20 a month, depending on the size of the store. Its transaction fees are a steep 12.5 percent, which is much higher than Amazon’s 7 percent or eBay’s 10 percent, but Amazon and eBay both charge a lot more in monthly fees. eBay charges as much as $300 a month for power sellers. Says Yee:

Ebay’s model is they are trying to take two thirds of the lifetime value up front,” says Yee. “We are flipping that. We lower the barriers to listing because we believe video will convert. We know video sells because it has been happening for 30 years.

On Shopflick, the sellers deal with inventory and shipping, and hope that the viral nature of video will help market their products. Shoppers are encouraged to recommend their favorite products, create collections of their favorite products, and even create their own videos. It is what Yee calls “user-generated merchandising.” To help sellers create the best videos, there is also a marketplace for videographers on Shopflick to help match sellers with video professionals. In this regard, it competes with TurnHere, but it doesn’t mark up the videographers’ fees.

Could this be where e-commerce is headed? Barry Diller, watch out.

I was Digital Hollywood today rubbing elbows with content creators and distributors in San Jose. On the agenda were several entrepreneurial forums where local startups pitched their companies to an audience of competitors, peers and venture capitalists. Given the words “Digital” and “Hollywood” can cover a lot of ground all of the companies generally fit the themes of the conference. I saw some interesting companies, some of whom haven’t been profiled yet on this site.

Here’s a rundown:

TurnHere

TurnHere was founded by Brad Inman who founded HomeGain. Staying within the community arena but moving to the world of travel, TurnHere creates and distributes travel and “local experience” films. They employ 2000 independent filmmakers around the world, with 250 trained in the 90 second “Turn Here” style, which includes a local as narrator to capture the right flavor of a place. The firm experimented with different lengths, but is gravitating towards 90 second to 2 minute features in our short attention span world. The business model is centered on local advertising and advert films in the profiled regions. I watched several films in both genres and they were great. I am really impressed by the site and the films. The food makes you salivate, the sites make you want to hop in your car.

RallyPoint

Started by Jeff Allen, Managing Partner of Rocket Systems, who is taking a break to be CEO, RallyPoint aims to bring the Internet (and interactivity) to your TV. Inspired by a desire to talk smack to friends while watching sporting events, it will offer an array of products like chat, voting, game show participation, pop up alerts, auction watch through applets overlaid on broadcasts. They will create their own device and hope to be integrated with other devices as well. Another device in the living room scares me, but the company is in its very early stages, so they’ll presumably be testing the concept. They plan to offer their service through subscription, targeting the market of people getting score updates on their SMS phones. Sounds like Wink and some other startups from another era, maybe the time is now.

Mediazone

Funded by Naspers, a large South African media company, but based in the Silicon Valley, Mediazone is a secure P2P video delivery platform that supports media portals and live premier events. They recently did live coverage of 300 matches on 9 courts for Wimbledon. There’s a rugby channel and, in the past, they’ve covered things like the Maverick Surf Contest. I’m trying hard not to utter the words long tail, but I really have no choice. That’s what a service like theirs enables. Streaming through their P2P network allows them to deliver multiple channels without the bandwidth costs of other streamers, which makes it sound like they are playing in the RedSwoosh neighborhood. They are working on an interactive television platform, perhaps similar to Rallypoint, which they only mentioned in passing.

Magnify

Magnify is led by Steve Rosenbaum, who created MTV’s “Unfiltered”, so he’s a serious veteran of the user generated movement. Magnify is a scalable human powered review system for user generated video. With 70K Youtube uploads per day, they want to help narrow the relevancy of search. Volunteers become reviewers and they start to organize and tag the better material to form communities to share like content. Lo and behold, as we watched a venture video channel, they showed a video of our friend Mike Arrington. Certainly, it did seem to provide relevant content. Whether or not, human editors will ultimately be necessary to create these communities, I don’t know, but they are certainly trying to fill a glaring need in the online content space.

NBOR

The three minutes allotted to Danny Yeager from NBOR (No Boundaries Or Rules) was not sufficient. I’m not really sure what they do. What I did glean is that it will either be the most significant product of my life, will disappear from the face of the earth or fall somewhere in between. They make both software and hardware and have about 70 patents. The software is called Blackspace and is intended to replace the UI of Windows and works across multiple devices and gives a totally open, cross boundary UI that has, well… No Boundaries Or Rules. They’ve also created some tactile devices that turn flat panel devices into blank screens that can be reused for different applications (though I’m not clear how). You’re probably realizing you have no idea what they do. Well, join the club. I can not provide a serviceable summary or review of something that claims to be this big and gets three minutes of my time. This will be a TechCrunch follow up, because there could be a really interesting story here.

Other companies featured (that I missed) who might be worth a follow up: Clip Syndicate, who syndicates video clips to verticals across the Internet; FrameFree, who provides technologies to create motion graphics for the web and mobile devices; Postroller, a video ad network; Mspot, an aggregator and distributes premium video content for the web; Wideorbit, an advertising infrastructure software for content distribution networks; and Teamdating, a dating site geared towards group social interactions, that wasn’t featured in our previous post on online dating sites.