In the mid-1990's, lots of people were talking about "video on demand" or interactive TV-like technologies. Today, particularly considering things like AT&T's Uverse, we're actually capable of doing it at reasonable prices and large scale. The question is how it will shake out. In a system like Uverse, I believe they have their own fancy CDN to get the content out to the edges. How many vendors would be willing/able to build out the necessary CDN infrastructure, never mind co-location issues?

For now, it's the people who own the wires who can do the content distribution at scale. I fear that isn't going to change much in the next few years.