The main reason internet TV has never taken off is the byzantine DRM restrictions and battles. Add to that the format wars, and nothing is compatible with anything else. Even with our supposedly finalized HDTV and HDCP specifications, incompatibilities are still being found, not to mention the almost ten year delay in rollout.
Add to that ... ads. Not just full-screen commercials, but ads that fly in, occupy 40% of the screen during the program itself, and that constantly move, jiggle, flash, or otherwise distract from the show you are trying to watch. Even on premium pay channels and now even pay-per-view, the intrusion of advertising material is increasing. As the public learned to avoid ad breaks (fast-forwarding, channel surfing, and just leaving the TV during ads) now the companies simply place the ads on the screen during the program no matter how disrupting it is to the show and the viewer experience.
Some years back, the media cartel was astounded at the acceptance of television series released on DVD. They couldn't understand why the public would pay to see TV shows that were already being shown for free and repeatedly in syndication. The public feedback was loud and clear: we like control and we don't like advertising and annoying interruptions. We are willing to pay money not to be insulted with advertising.
So, this form of internet TV will die yet again, because Intel and Yahoo overlooked what the consumer wants: choice, control, and an immersive viewer experience. As far as having a PC on my TV, I've had that for almost 5 years. my current one is a recycled laptop that sits in my equipment rack, plugged into the VGA port of my 52" Vizio HDTV. With Wifi and a nifty wireless keyboard/touchpad combo, it allows me to surf the Web whenever I want while sitting in front of the TV. I use it to look up credits on IMDB, show schedules and other miscellanea. It didn't take any special technology, new standards, or programming.
Best of luck Intel, now Viiv will have something to keep it company on the shelf ...
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