It’s a strategy that makes sense and I’ve long wondered why YouTube themselves (now owned by Google) have such poorly positioned AdSense ads (usually running up in the banner position).
I’m not convinced that ads next to video will be highly lucrative but on a page where there is video it does make sense to have it in the vicinity of the point of focus of the page (the video).
I guess the question to ask is whether AdSense allows such a placement?
The rule for images seems to be that there needs to be some visual barrier between ads and images to make it obvious that they are not one and the same thing – I suspect it’d be similar for Video – although a video does have different visual controls around it that do make it pretty obvious that they’re not the same thing.
I suspect that as video becomes more and more popular on blogs and websites that we’ll see more and more innovations with ads around videos.