John Rogers' post on future revenue streams of TV is interesting, and reminds me of a discussion I had with Christie's Mom over Christmas when we were talking about DVD players.
It wasn't a particularly long conversation, but I was trying to explain why I didn't much care about Blu-Ray, while I was excited about the new upconverting DVD player she got me for Christmas.
I almost hated to tell her that it wasn't about the picture quality; it was that the new player had an HDMI output, which freed up a port on the back of the TV. I was arguing that blu-ray was doomed because no one cared about picture quality.
According to me (and of course you know I think I'm right), DVD beat VHS because you didn't have to rewind it before you took it back to the store, and you could jump straight to your favorite scene. CDs beat tape because they lasted longer and, again, there was no rewinding.
In my not-even-remotely-humble opinion, convenience trumps quality every time, and I said that I thought Blu-Ray was doomed because it was expensive, but mostly because digital delivery was only a few years away.
Now, with the new Tivo, I have seamless digital delivery, and I've got to say I would much rather have that than fantastic picture quality. Although the picture quality on Netflix streaming is surprisingly good.