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The good news is that while the coming transistion is likely to be rough on many established networks and providers, it’s going to be great for consumers and developers. Here’s how.

It may not happen this year, but soon enough, “each will go outside their network and go national,” Mr. Morgan predicted. And that will lead to a world that the pay-TV-industry consumers have always wanted: one with true competition.

Intel has not announced a name, a price or a release schedule more specific than some time this year, but those who have seen it describe it as a significant advance over any existing cable or satellite platform. “I’m impressed because Intel makes chips; no one expected them to come out with a product like this,” said Michael Bologna, head of advanced TV at Group M, who has spent several hours with the box.

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Professional sports franchises and leagues are extremely concerned about slumping attendance at stadiums due to competition from television, computer gaming and lofty ticket costs (which are their own doing, by the way). In-stadium location-based mobile services that better connect season ticket holders with teams would be a start, McDermott says. For example, teams can use their databases to recognize a ticket holder’s birthday by sending a digital coupon for a free hat or drink via text or e-mail to their smartphone as they enter the stadium. “The fan experience has become our passion,” McDermott says.

As the distribution of Internet-connected video devices continues to rise, broadcast and cable television will become less and less relevant.