Disintermediation: Who loses in the TV wars?

Hulu continues to push the envelope. The popular streaming video site has a lot of TV shows on it, and it just released a Macintosh application so that you can watch TV shows on Hulu without the bother of using a Web browser. It means a better viewing experience with higher quality.

It also means that the disintermediation of the TV business is well underway. The Internet is forcing out costly middle man businesses that were vital and necessary parts of the distribution chain in the old days, ten years ago, but are no longer needed. The rise of broadband and Apple's iTunes store was the end of the music store on Main Street--there are hardly any left.

In the TV business, the cable and satellite TV companies are the middle man. They don't own the content, they just pass it along. But if you can watch American Idol on Hulu via your Internet connection, why pay $60/month for cable TV service? We've been here before. The Internet is relentless, and the new is forcing out the old. The cable TV companies could remain viable, but they can only do so by changing their business model and becoming an open access transport system. They could actually make more money by doing so. But so far, none of them seem willing to even consider it. So they will likely go the way of the music store. In ten years, cable TV will be completely gone.