While internet TV like Hulu is terrific for consumers, it is much more significant than just a new way to be a couch potato.

Broadcasting and Television are in trouble. They have been living high on the hog for decades and like San Francisco's Bay Bridge, the media empires are showing cracks.

Internet TV is surviving and it totally changes the game.

First off, it allows content owners to reach viewers directly. They no longer need intermediaries like Comcast and possibly even broadcasters like the major networks.

The problem for content producers is finding money. Eventually, small content producers (who dont need much to survive) will start making money with direct-to-consumer fair.

The problem for traditionally media companies is keeping enough money flowing to support their massive overhead. (Prognosis - cloudy.)

Internet TV fundamentally breaks up the business structures that have made companies fat, dumb and happy. For decades.

ipTV is to TV what Google is to newspapers. A new technology that requires new business models.

There is are actually a lot of similarities with Google so I think there should also be some money in this for someone who can think in the new model and get the content contracts to make it work. That is the big problem right now holding everything back - restrictive legal contracts held by monopolies that want to stay that way.

Content delivery companies like Comcast get money from users for putting a pipe in every house. The content itself is largely paid for by advertisers though.

And ipTV is MUCH better for advertisers.

I create an account with Hulu (or whoever). They know my name, my address, my email. (Never had that before.)

I gladly tell them what shows I like to watch and which episodes of those shows I enjoy. I can select, rate, post comments, and share. (Definitely never had that before. Advertisers can direct-message customers of specific shows.)

They can then observe the hell out of me. They already have a name and address. They can then see how much I actually watch. When I watch. How many sittings it takes to get through an episode or a series. Do I pause or watch straight through? Do I channel flip? Do I watch kids TV during the day and porn at night? Am I 100% cooking shows? Or dancing shows? or sci-fi?

For decades, advertisers have had to totally guess about TV audiences. Ridiculous monopolies like Neilsen's exists (and profit handsomely) just to "inform" advertisers about user behavior using lame survey techniques. The resulting guesses drive billions of dollars of advertising and TV content decisions even though the data is so shallow you couldn't wash a bird in it.

Quite frankly, our media system is retarded and due for a tumultuous change. Which will probably be good for everyone but the traditional players.

If the Internet gets sports, game over.

If Comcast buys NBC, and shuts down Hulu, we will have to wait longer. But that only puts more pressure on illegal providers of bittorrent to give the people what they want - free content.

Free is a painful product to fight but internet TV is just a better product for customers and eventually companies will have to adjust, one way or another.