Go play with it! -> http://apps.bytestemplar.com/channelsurf/ (Click anywhere to 'change channels'.)
I stumbled on Neave.TV last night and watched it until the clips rolled over to the start again. I noticed it was written in Flash, and since that tech is on it's way out, I wondered how easy it would be to implement what I was seeing, in HTML5.
Once I found the playlist XML file, I pulled down a couple FLV video clips, converted them to MP4, and got to work. After an evening of screwing around getting it working, I started yanking down even more clips in WebM format off of YouTube. :)
Tested in the latest Chrome and Firefox. Still has some bugs, some related to mobile rendering.
I own none of the video content. Half the clips are the original ones from Neave.TV, the others are selectively yanked off of YouTube.