If you want a perfect example of what is driving the likes of Verizon and Comcast crazy, take a look at CNet TV, which is currently in beta. CNet has a huge collection of video material that has been available on some cable systems for a long time, and they are now putting all this on the Web.
Whoever designed the CNet TV site has done a pretty nice job, stealing liberally from both iTunes and iPod software design. Overall, the effort is nicely done, and provides a good glimpse of the future of television. These sorts of Web-based TV efforts must leave broadcast and cable operators bawling in a corner for Mommy. CNet TV makes 20th century cable and TV technology look, well, so 20th century.
Video quality is adequate, which means you can watch it comfortably in a medium-sized window, but there is noticeable pixellation, like virtually all similar Web TV systems. Quality is better than most You Tube videos.
As I watched the introduction, I had to chuckle when the CNet spokeswoman encouraged me to "enjoy hours of video." Uh huh. This is the weak point in all these schemes. Hardly any of us has "hours" to sit around watching fuzzy video on fairly arcane and/or obscure topics. The fact that college kids (who do have hours to sit around watching, um, "hours of video") drives up the traffic at these sites does not mean the general population does.
If had two free hours, I'd much rather download Pirates of the Caribbean and watch it than two hours of geeks talking about the differences between the Red Hat and Ubuntu versions of Linux. I have said it before, and I'll say it again: both podcasts and videocasts take time, and that is what we have the least of these days. I can scan a Web page of text and images quickly and determine its value, but I can't scan a thirty minute video on a tech topic of interest and figure out if I should watch it or not.
Make no mistake: video and audio content is driving the whole Internet, and the telecom and cable companies are terrified of losing control over content; hence, we have their feeble argument that tollgates are the only way to go. They are the only way to go if all we want is to cement their current duopoly in perpetuity. CNet TV is a great example of the kind of rich, and yes, often useful, content that will be commonplace.