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Bill Gates on why the Internet is the future of TV

[From Pondering Primate]

Bill Gates, at Microsoft’s Strategic Account Summit in Seattle:

… this idea of changing TV from being a simply broadcast medium to being a targeted medium (through its IPTV initiative). … In order to have this be targeted, you cannot send it over the airwaves. There’s just not enough capacity to broadcast thousands and thousands of different video feeds. And that’s where the Internet comes in. The Internet is now cheap enough that the idea of having every household in America watching a different video feed has become practical.

For any innovation (read: personalization) in the TV business, traditional broadcasting will no longer work. Either TV networks stifle innovation, or partner with telcos (and ISPs) to build their next-generation delivery channels via the Internet. What will it be?