An article by Michael Arrington over at TechCrunch.com explores the death of broadcast (linear) TV. Some research indicates that online video watchers watch less TV, well duh.
The key tipping point will be when a startup is able to distribute proper television content over the Internet legally. People will begin to abandon their cable tv subscriptions in favor of Internet distribution. MobiTV is in the best current position to do this – they have a ton of cash and are only a few deals away from being able to offer the equivalent of a cable television subscription over the Internet. And The Venice Project may also win. iTunes will continue to pursue their pay per show model, and that will also take market share.
I realized something was different the first time my wife and I watched Youtube for 2 hours one evening, forgetting to turn the TV on.