While the 20th century telecom dinosaurs are fighting it out in places like Texas for 20th century legal rights to 20th century content distribution, the 'net is quietly solving the problem.
An Open Source effort (FOSS is becoming the accepted acronym--Free and Open Source Software) is building the 21st century video distribution system, called DTV. Participatory Culture is putting together a seamless, easy to use, end to end video distribution and viewing system that is completely free, requires no franchise fees, and can deliver any quality of video, up to and including HD TV. The software is currently in beta release, but the interface for the Mac version is excellent and easy to use. It supports downloading for later viewing, so you don't have to watch at any particular time. In other words, it is a personal Tivo-style system, but with a much wider range of material from many more sources.
Indepdendent video makers will drive much of the IPTV content for some time, but the minute there are enough eyeballs to make ads work (yes, we'll still have ads), expect to see broadcast quality material debut.
The group will release Mac, Windows, and Linux versions eventually, but for now, only the beta Mac version is available. A Windows version is promised shortly.
Two tips: If you don't have a Tivo, think carefully about buying one. IPTV is already eliminating the need for them. And if you have not yet bought a flat screen TV, when you do, make sure that it can be used as a computer monitor, because the days of standalone "televisions" are over. And related to that, there are rumors that Apple's next version of the popular Mac mini will have an HD TV output jack. A Mac mini (or equivalent Windows hardware), an HD TV monitor, DTV software, and a broadband connection, and you don't need cable TV or satellite TV.
Game over.