This is based on a Philips invention for their TVs (http://en.wikipedia.org/wiki/Ambilight) however, the difference is that this HTML5 video doesn't occupy most of the users vision.
Since these TVs are high-end (and thus large) and are viewed at a distance the picture fills the majority of the screen. However ambilight as a fraction of the screen that's much closer to my face felt very distracting.
If the effect was more subtle it might be better, but especially bright colours like reds were pretty distracting.
I'm on a pretty fast machine running latest Safari and you can tell the glow is behind the video because there's a half second or so lag between scene transitions and the glow changing to match.
The demo only works on Firefox it seems, but does a few interesting things including blurring, colorizing, extracting thumbnails etc. from the live playing video.
There also seems to be general surprise that you can do this kind of thing with HTML5 video and javascript which makes me think this impressive demo hasn't been seen by enough people:
I was surprised the javascript code ran so fast it could change the lighting in what seemed real-time to me. I didn't expect to see video scripting inside a browser.
Since these TVs are high-end (and thus large) and are viewed at a distance the picture fills the majority of the screen. However ambilight as a fraction of the screen that's much closer to my face felt very distracting.
If the effect was more subtle it might be better, but especially bright colours like reds were pretty distracting.