As we saw with CSTV, there is so much quality content that’s not being distributed online today by rights holders. Even if it’s available, it’s typically bundled with some linear TV subscription.

Given the dollars at stake for the leagues with their legacy broadcast partners, you can see why most are hesitant to go a la carte online.

Today, the masses have little awareness of internet-connected TVs. We’ll be stuck with a significantly bundled system until there’s a broader internet-ready audience ready to support an a la carte, online premium video world. The market should get there, but it will take time.

I think startups are unlikely to compete successfully from a content perspective given rights fees. Businesses that could win are services that deliver a better user experience, for accessing content a la Boxee, discovering content, or enabling personalized, interactive content around video. Simplicity and curation are key to any of these services given the glut of non-premium content crowding the web.