According to this news report, Google's YouTube subsidiary has reached a deal to make full length movies available online. The deal proves that competition works. When YouTube refused to work with the movie studios a couple of years back, that gave rise to Hulu, a competing video site designed specifically to support full length movie and TV show downloads.
Hulu has been wildly successful, and YouTube has been forced to sit down and work with the studios or risk being marginalized by the competition.
The impact on the Internet, though, will be continued pressure on bandwidth. The cable companies have had to continually increase their "up to xxx megabits" to keep pace with what their users want to do, and DSL, which is not upgraded quite as easily, is already being described as "dial up" by some folks in communities we are working with. But neither cable modem or DSL is capable of meeting the demand that is growing month by month, and fiber is the only long term solution.