The two will eventually merge. Distinctions will become less obvious. Web access (and sites like Hulu, et al) will force traditional delivery services like cable to offer a la carte services rather than one price for 150 channels.

entertainment, online classes live video chat (like skype) will increase

I hope that broadband access will lead to more and better options for VOD, including user-generated content. If the network providers don't offer it, I think more and more people will be using their devices to pursue it -- either in combination, like a desktop computer and an AppleTV -- or by repurposing other devices, like game consoles.

good question and a confusing one too - one assumes that all houses with iTV will have BB internet access, as they will be getting iTV services through digital cable or IPTV providers (who, given the way bundling is going, will also be the ISP in the home). That being said, people currently do, and will continue to get content through their PCs, and increasingly on mobile devices. However, based on research, I know that the TV is the preferred screen for viewing video content in the home. If iTV applications bring personalized and enhanced content to the TV screen, as well as added control to the video experience, then people will turn to the TV rather than the web/PC for this content. Hands down - no competition.

Web .. or whatever comes next via broadband.. uber alles.

unsure

This is happening today. Look at the DIRECTV on Demand service that offers VOD content pulled in over the Internet.

TV and computer time will be more of an either / or experience, not a simultaneous experience.

They will use it to create a convergent, richer experience than either medium could provide if used separately. A richer iTV experience will influence households into specific areas of the web, particularly if synchronization of media is transparent to the user. It will also funnel web navigation into a programming-oriented, streaming experience. Household habits may change as well, as it could become a shared experience once again, as opposed to the individualization, separation and disintermediation created by the web.

The line is getting more and more blurred. Most cable operators bundle both cable and broadband services together. As technology evolves and consumers get more comfortable with broadband and interactive content the line between the two will become invisible and seamless.

I would anticipate a blending of the two technologies, especially with the recording functions available now with DVRs. Effective iTV instruction will need to take into account the ease of access to the web for most participants, and possibly encourage short forays out for additional information. It will not be long before the home TV also serves as a computer monitor, so the two instructional modes should take advantage of each others strengths.

I think the web enables ITV services in many cases (such as Xbox live, the playstation network, and Apple tv services). The increased competition to cable / satellite television providers will accelerate their introduction of networked home options for new set top boxes, and generally accelerate change in the industry.

Broadband will continue to eat away at the traditional televisoin market even with iTV in the home. That is because as soon as broadband has the ability to sell intersitial commercials it can effectively monetize long form content. It has not had the ability to do that until now and only Pay-per-view or subscription models worked. With the money to suppor long form content, Broadband TV can produce niche content for niche audiences in ways that iTV can not compete, even with interactivity. In other words, if you think it is only about interactivity you are missing the boat.

I think it will all be connected.

It is vital to fund the programming. The web allows integrating extra information and advertising into an existing video stream. Apparently, all households that have iTV will also have data access. Providers have yet to figure out how to get users to PURCHASE the available data access, however. Probably, access to information tied to the TV programming will be automatic, while other broadband access will be an extra tier of service.

Both will be on and the viewer will go between the two to seek the desired information.

Tru iTV will require and integartion of broadband access and broadcast access for real richness. The 'lite' version' will have a more rapid uptake with an older less sophisticated demographic.

Much like adds on Hulu.com are clickable, you will see far more integration between video content and other information media. People will seemlessly jump between video programs and other internet content. Surfing the web and channel surfing will become the same activity.

It will allow content to flow to the TV, the content that people usuually see on their computers. Production values will increase on USG. They will watch programmming from more sources. E Commerce will increase.