A recent home builder study by the Consumer Electronics Association indicates that 53 percent of homes last year went up with a structured wiring system behind the walls. Clearly, builders have gotten the message about the benefits of having a technology support system in place, with 87 percent of respondents reporting that they offer structured wiring to their clients.

Those bundles of video and data cable have been the backbone for wired home networks in recent years, bringing broadband Internet capability to millions of households. Now that infrastructure is being tapped for a new generation of home entertainment and PC products that demand a fast track to the Internet. The long-touted promise of convergence products—the marriage of computers and consumer electronics is making headlines again.

This time it just may stick. What's changed? The arrival of Internet video, for one thing, along with advances in networking, improved compression formats, and easier-to-use products. Video takes up a lot of space in the data pipeline and there has to be an acceptable trade-off between content and quality for consumers to buy into new technology. Better compression means more fluid motion, sharper detail, and an overall viewing experience more akin to what you see on television. It also means faster download times. You can download an hour-long TV program in less than 15 minutes, thanks to broadband Internet access and advanced compression.

Sony's Bravia TV (above) accepts the Internet Video Link (below) which facilitates a connection to the Internet via an Ethernet cable. Homeowners then can watch streaming Internet content on TV. The content is coming on board, too. The popularity of YouTube and video download and streaming services from a wide range of sources—technology startups, established technology firms, and even traditional broadcast TV companies—has product engineers brainstorming new ways to capture that video and make it available around the house. Bringing video to the PC is step one, but few people want to watch it on a 17-inch monitor in the office. Step two is getting content people want to watch to the home's TVs.

On-Demand Video. Industry watchers say the Internet video phenomenon is here to stay. According to technology research firm Parks Associates, 31 percent of U.S. consumers watch streaming Internet video at least once a month. “The audience for streaming video is growing fast,” says Kurt Scherf, vice president, principal analyst at Parks. “Presenting Internet content through the traditional television experience opens many opportunities across multiple industries.”

Sony is taking a pioneering role. The company's 2007 Bravia LCD TVs feature a cut-out on the back panel to accept a custom fit module called the Internet Video Link. An optional box slips into the slot and connects to the Internet via an Ethernet cable. Consumers then can watch streaming content from Internet channels provided by AOL, Yahoo, Grouper, and Sony movie and music sites.

Sony is supporting the introduction of streaming video with its Xross Media Bar user interface, which allows users to navigate standard TV menus and Internet content from the same menu, helping to avoid confusion between broadcast and Internet content. The Internet, then, becomes just another channel to watch.

HP is taking its own approach to convergence. The company has a full line of Media Center PCs, which serve as the storage vault for TV shows, digital images, homegrown videos, and music. The company is also investing heavily in its Media Smart TVs, a series of high-definition LCD TVs with built-in networking functionality that enables you to tap into content from a Media Center PC.

For consumers, access to movies and TV shows via the Internet represents another type of video on demand. Being able to watch Lost later in the week because you had a business dinner the night the show aired is the kind of viewing flexibility that the digital world offers. Sure, you could time-shift a program during the VCR days once you found a tape, mastered the blinking 12:00s, and programmed in the right time. The process took dedication and patience that many people didn't have.

Now, a couple of clicks on the remote control with the help of a simple graphics-based programming grid and you're watching the show on your terms. That kind of convenience comes at a price, but people are showing a willingness to pay.