As video becomes part of the IP stream, as it is on the Internet, and as IP-enabled devices become part of the home entertainment system, as they have with IP set-top boxes and in-home networks, the next generation of video services becomes all about giving consumers the ability to personalize their own content.

“This is part of what we call the ‘digital lifestyle,’” said Dan York, executive vice president of programming for AT&T Project Lightspeed. He now also oversees AT&Ts Blue Room, a new portal of online content that includes video. “Post-BellSouth, we will be the number one ISP in the country, and it is important to serve consumers' needs on whatever platform — wireless, DSL and our new TV service. The differentiator is being all-IP, which can permit cross-platform service for our three-screen strategy.”

As the Web video explosion generates massive amounts of IP video, there is also the ability to transform the user experience in new ways, said Aslam Khader, vice president of marketing and strategy for Ensequence, which provides an interactive TV platform being used the U.K. and U.S. “The power of IP is two-fold,” he said. “It is a significant evolution in the consumption pattern because distribution and consumption can happen on my terms as a consumer. The other thing IP does is that it provides a very interactive platform, with a huge opportunity for brands and programmers to create completely different experiences as they apply their creative talents to the platform.”

But agreeing that next-gen video services will be consumer-controlled and highly customized is easy — making it happen is the hard part. And for once, the technology may not be the biggest difficulty. Although there are still some technical challenges involved in moving content across viewing platforms and giving customers more access and control, the bigger issues revolve around changing business models, protecting content ownership, assuring quality of service and ease of use, and figuring out how to generate revenues in a world of free or low-cost video content.

“I think there are some challenges there, although honestly, I think the technical challenges will be overcome much more rapidly than the business challenges,” Motorola's Kennedy said. “The tough thing is that [user-driven content] really breaks the model that is out there today.”

To understand where user-driven content is headed, it's a good idea to look at where Web video is right now — even though it is changing so fast that a snapshot is quickly out of date.

ClipBlast has identified five segments of video content providers, Baker said, including media companies such as Time Warner and Fox; independent producers, including CNET and Broadband Sports; local new channels; smaller video producers or video bloggers; and people with handycams and cell phone cameras.

The business models for these different segments are changing rapidly, even as the volume of content rises. “I don't think there's clarity yet for consumers, distributors or content providers,” AT&T's York said. “We are starting to see trends, and we are all learning together on some of the applications. We are just beginning to figure out what content works in what format, how long it should be and where it's accessible.”

On the ordinary user front, the advent of less-expensive but high-quality video recording gear is creating vast quantities of content that needs storage and access, Cisco's Bosco said.

“We are seeing the emergence of consumer devices that are capable of capturing multi-megapixel stills and TV-quality video well beyond VHS,” he said. “The consumer electronics industry is developing high-definition consumer camcorders that could hit the $200 price point by next Christmas. The convergence of the best of the Web in terms of choice and the best of TV in terms of richness of the TV experience comes together in the next two years.”

For broadcast companies, which already own content, the focus is different, said Eric Conley, president and CEO of Mixed Signals, which focuses on quality assurance monitoring for large-scale video.

“From ABC's perspective, content is king,” he said. “They view the Internet as a way to potentially make more money on the same set of shows.”

Using its own Web site as a test bed is just one option, in addition to selling DVDs and using Google Video as an outlet, Conley added, all as part of a push to compete in the content market.

These very large media companies are quickly finding that broadband distribution is becoming a primary means of reaching some consumer sets, Baker said.

“We are having some discussions with some of the very large media companies — they are at an inflection point,” he said. “There is tremendous need to get their content out.