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Public diplomacy is changing so rapidly because of digital media," she said. "You need the tools to communicate constantly in an increasingly interconnected world with 24/7 news feeds, constantly updated blogs, and of course, viral video."

"This redesigned website and the redesigned blog, DipNote, both aim to employ the practices of 21st Century statecraft; to educate, listen, learn and engage," Dowd said.

What I love about online video is the way that it has allowed more people to join a global conversation.

So much of this creativity relies on the freedom to remix and build on the material created by others, a freedom that's constantly being challenged.

So Vuorensola took matters into his own hands: he used a Finnish social networking site to build up an online fan base who contributed to the storyline, made props and even offered their acting skills. In return for the help, Vuorensola released Star Wreck in 2005 online for free. Seven hundred thousand copies were downloaded in the first week alone; to date, the total has now reached 9 million.

"Whether it's through piracy or distribution your film is out there on the Internet, so we decided to harness this."

"I have my blog, but I essentially gave the film to the audience and they ran with it," Paley says. "It wasn't self-distribution, it was audience distribution."

"What I have learned is that the more freely you show the film, the more audiences will buy the DVD and surrounding merchandise," she says. "

And in May, documentary filmmaker Franny Armstrong launched a website called www.indiescreenings.net, where people can buy a license and then screen her climate-change documentary, The Age of Stupid. Armstrong incentivizes buyers by allowing them to keep any profits from ticket sales.

So Vuorensola took matters into his own hands: he used a Finnish social networking site to build up an online fan base who contributed to the storyline, made props and even offered their acting skills. In return for the help, Vuorensola released Star Wreck in 2005 online for free. Seven hundred thousand copies were downloaded in the first week alone; to date, the total has now reached 9 million.