I sincerely hope that the rest of these new discoveries they talk about aren't all based in the internet/American Idol-esque vain, if you get what I'm saying. I'd like to think of Justin as a CEO who would do the legwork to find talent (i.e listen to demos, go to clubs, etc.) not just jump on the big YouTube Choo-Choo.
I can see him going to various places to listen to new/established acts but the potential 'signings' could come from anywhere, including the 'reality' type ones that you've mentioned