The history of Internet television is not a long one, although its roots stretch back to the 1960s and the development of the Internet through the efforts of DARPA, (Defense Advanced Research Projects Agency). As the Internet evolved from a highly classified government project designed to network military computers into the consumer-driven global communications apparatus it is today, more content became available for the average person. As personal computing technology developed into the mid-1990s, so did the processing power and graphics capability to display video through digital formats such as MPEG and WMV. As the Internet came into widespread use toward the end of the 1990s, there were increasing opportunities to stream video over the web. The development of streaming video was pioneered through early software and, ahem, the efforts of the pornography industry, which helped perfect formats for delivering video online.
While advancements were steady in allowing people to view videos through the Internet, it was not until broadband became more readily available that Internet TV really became a possibility. The 56K max dial-up modems of the previous decade were too slow to stream anything but the lowest resolution video and audio. Also, when it came to downloading videos to a computer, the process would take hours, if not days, and was often interrupted due to sharing dial-up access with a regular phone line. As DSL, cable and satellite broadband access became available at rates the average household could afford, more television shows, movies and general videos started showing up online. Much of this was done in the early 2000s, through peer-to-peer software such as Kazaa, which in addition to helping users share controversial mp3 music files also allowed them to trade their favorite shows and movies that had been transferred from other formats onto their computer. It must be noted that the history of Internet television is a mix of legal and illegal developments.
Perhaps the biggest recent development in Internet television history was the explosion of YouTube in 2005. Like most Internet giants, the site started as a small project led by three tech-savvy young entrepreneurs. Looking for a better way to find videos of current events shot by individuals all over the world, the founders of YouTube created a forum that quickly filled not only with user-generated content, but also television programs. Even though copyright infringement necessitated that these videos be taken down, YouTube showcased the potential for streaming countless types of programming online, monetizing it through ad revenue.
As more video-sharing sites popped up in 2006-07, it became increasingly hard for major broadcasters to keep their shows offline. As it became clear the Internet could actually produce revenue and not just siphon it away, major broadcasters such as NBC began making their shows available online, using advertising sponsors to cover expenses and turn a profit. The pinnacle of this effort can perhaps be seen in the launching of HULU on March 12, 2008. Several networks, both broadcast and cable, stream their videos and clips through a commercial-supported format at HULU.
Developments in Internet television are starting to eat away at traditional television ad revenue. Bloomberg.com reported that shows such as "The Simpsons" and "CSI" are garnering higher advertising rates online than through prime time television slots. Many argue that the future of programming lies exclusively through the Internet, in one form or another. However, cable and satellite companies are fighting to stem the tide of customers going exclusively online for TV programming.