Attention all lifecasters: Ustream is set to start displaying advertisements in the streams. The popular live video chat service has partnered up with YuMe and Yahoo to show advertising in the form of text overlays.

Here’s an example of what it will look like:

According to Patrick Ross of UstreamTV, the overlays will be able to be closed by viewers and they are semi-transparent. The goal, according to UStream ‘is to develop a system of advertising that works technically [and] is acceptable to our viewers and broadcasters while helping us build a sustainable community.’

Ustream will slowly implement this big change by choosing a dozen early testers. Ustream hopes to potentially expand the ads and try out several different formats including flash overlays and rolls.

This move is definitely going to help Ustream monetize its community, but could it potentially anger their users and audience? What do you think?

(Via Mashable!.)