For while now, we’ve been puzzled by the surprisingly large number of industry analysts operating under the assumption that “internet video” represents just another (albeit fast-growing) computer/web browser use case.  It  comes up most often during panel discussions and articles covering the seemingly intractable problem of how to monetize internet video - “how can we get internet video users tolerate a TV-like higher ad load?” is often the point at which shoulders start to shrug, hands get thrown up in the air, and the discussion grinds to a halt.

“By making the internet video user experience more like TV” is one obvious answer - and one that at least allows the discussion to continue…

Getting that video bit stream from the home router over to the flat screen television has so far proven an elusive problem to solve.  When it does finally happen, though, the internet video viewer will be comfortably sitting back on their couch with friends and family watching long-form content, rather than leaning forward alone at a desk watching two minute clips of water-skiing squirrels and Christopher Walken impressions.  And at that point, there’s no inherent reason to assume a higher ad load (and thus - ta-daa! - monetization of internet video) wouldn’t be possible.

Meanwhile, the question remains: why the disconnect on the part of many to analysts to recognize the role of user experience in solving the monetization issue?  Why the insistence on relegating internet video to the computer and browser?  Some analysts may be beholden to the incumbent (and threatened)  MSO industry and still others may mistake what’s essentially a consumer electronics hardware issue for a technical and/or presentation issue, but no matter -  it’s fast becoming a moot point, because as the long-awaited convergence of the internet and consumer electronics draws nearer and gains momentum, the distinction between internet video (as a technology) and internet television (as an experience) is becoming too obvious for any of us to ignore.

A few recent developments:

Youtube Youtube has a several television-centric initiatives now underway - including, according to the service’s official blog, support for true HD (1080p) resolution starting sometime this week.  Clearly, this is less about that 2 inch-by-3 inch Flash window we all spend a few minutes with from our office desktop from time to time than it is about a full-size television screen (the move also goes along nicely with YouTube’s recent move to begin offering the type of premium content that would benefit from higher resolutions).

Then there’s YouTube XL - a large-display YouTube interface expressly designed for the “10 ft.” television experience.  As I’ve already mentioned, a truly viable internet television solution is going to have to involve some new type of standalone consumer electronics device.  However, YouTube XL could be an important part of the equation, perfectly suited for a new generation of network-enabled televisions with embedded web browsers  (the Norwegian “Opera” browser appears to be focusing on this nascent market, having already partnered with CE companies such as Sony, Samsung, Ericsson, and HTC).

Boxee Speaking of CE hardware…..  We look forward to attending the unveiling of a new Boxee beta next month.  Based on the open-source XBMC media center software, the Boxee app can be installed on Windows, OSx, Linux, and Apple TV machines connected to your TV, and provides a very credible lean-back internet video experience.  Until now, though, there has been no simple-to-use standalone embedded Boxee device available.  This will change very soon, though: at the event next month Boxee will also announce a CE hardware partnership - in other words, Boxee in a, um, box.  From there, Boxee should be able to expand beyond the tech-savvy/early adopter/hobbyist niche that’s comprised its beta user base so far.

Over the past year, the scrappy New York startup has made almost as much of a splash for the high profile series of cat-and-mouse maneuvers it’s engaged in with hulu as it has for its software: the well-connected and successful browser-based premium content service has repeatedly blocked successive Boxee implementations to access its content (content hulu is otherwise happy to make  freely available to your computer).

So while some analysts may have failed to adequately distinguish between the the laptop monitor and the television screen,  hulu’s owners NBCU, News Corp., and Disney clearly “get it” - and are aware of what’s at stake.

Who knows, in 5 years, we may look back at the era of web browser/computer-based internet video as merely an evolutionary phase; a proof of concept.

The CE folks are building it.  Will we come?    Stay tuned.

(…in other news, Digitalmissive will be attending the Future of Television Show East conference in New York next week - coverage of the event to follow…)