Barracuda & row_format=compressed to assist denormalization (ERROR 1118) (no replies)

I am wanting to execute a create table as select statement to essentially materialize a view in a read-only slave to generate configurable reports. The select spans 19 tables and brings in a fair number of text and varchar columns across them and results in an "ERROR 1118 (42000): Row size too large. The maximum row size for the used table type, not counting BLOBs, is 65535. You have to change some columns to TEXT or BLOBs"

Looking around, it seems like I might be able to get around this using a barracuda file format, file per table and row format of compressed. I believe I have configured things correctly:

mysql> show variables like 'innodb_file%';
+--------------------------+-----------+
| Variable_name | Value |
+--------------------------+-----------+
| innodb_file_format | Barracuda |
| innodb_file_format_check | ON |
| innodb_file_format_max | Barracuda |
| innodb_file_per_table | ON |
+--------------------------+-----------+

But when I try to run a test like this:

create table test_mv_2 (
first varchar(10000),
second varchar(10000),
third varchar(10000),
fourth varchar(10000),
fifth varchar(10000),
sixth varchar(10000),
seventh varchar(10000)
) ENGINE=InnoDB ROW_FORMAT=Compressed KEY_BLOCK_SIZE=8;

I get the same error. Anyone have any idea what I might be doing wrong? Thanks.