A lot of recruiters use free web chat services such as Skype and GoogleTalk to conduct interviews over the pre-recorded video option. What would you say are the benefits of using pre recorded videos over these free live options?
IANAR (I am not a recruiter!), but I'd say that the different approaches test different skills. Asynchronous video comes closer to testing presentation skills and public speaking abilities, while an interview can tell you more about communication skills and how people interact with others. For any position that involves presenting information to groups, a video submission could be a great resume enhancer or part of the screening process, but I'd still expect companies to interview someone in real time at some point, particularly with a team. The way people interact in groups compared with one-on-one can also tell you a lot about their communication and work styles.