ABC has announced that it is going to offer streams of its television shows including "Desperate Housewives" and "Lost" the day after they broadcast for free. Interesting twist on things since ABC was one of the first to offer its shows on iTunes for $1.99 a pop.
The catch in this case is you don't own the download (even though I am sure the tech savvy can remedy that) and you are going to be forced to watch those commercials as don't have the option to skip em. Small price to pay to have TV on demand or not having to stress missing your favorite show.
As far as how wide this will spread, that to me is debateable. The idea is sound. The business model actually exists (required to watch commercials) but will it spread. I guess it all depends on cost. The file size to serve up an hour long show is not small, nor is the storage, the servers, the bandwidth, etc (as youtube.com is discovering). Its easy to say will provide it, but a different animal to actually do it consistenly and with growing volume. I think in the short term, the networks will join the bandwagon but only in small carefully controlled doses.
As an aside, maybe the networks should consider joining together to offer their goods on youtube.com. The intrastructure and method of delivery already exists, they are thirsty for a business model, and they have a HUGE built-in audience. They could not only use the site to promote the show, but use it to create home grown homages (ie promotions) for those series in contests and the like. The best part though is no re-inventing the wheel and its probably possible to buy it outright.
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