Well the walls of the TV world are cracking fast. Bill Gates is presenting at the CES show and opened with this piece of news:

A joint Microsoft-NBC Universal announcement provides just one indication of the power of software to change the way people experience online entertainment. NBC Universal and Microsoft will raise the bar for live and on-demand Internet broadcasting through an exclusive agreement where Microsoft and NBC will deliver NBCOlympics.com on MSN, the official U.S. online home of the 2008 Summer Olympics in Beijing.

In the first “long-tail” Olympics, online viewers will have access to more than 3,000 hours of live and on-demand content so they can watch their favorite athlete or sport, regardless of whether the sport has seven fans or 7 million. NBCOlympics.com on MSN will be available free and powered by Microsoft Silverlight technology, a cross-browser, cross-platform plug-in for delivering high-quality video experiences on the Web.

“With Microsoft’s cutting-edge technology and MSN’s enormous reach, we will be positioned on NBCOlympics.com to enable Olympic fans to tailor their Olympic online viewing experience — they can watch Olympic sports content when and where they want,” said Gary Zenkel, president of NBC Olympics. “An on-demand Olympics means online viewers will be able to return to their favorite Olympic moments over and over or watch a performance they may have missed for the first time.”

I think that this looks close to where we may land for TV - The traditional TV show/event supported with much more web based content that is available at any time and easily accessible plus the last step - an affinity community that itself adds to the content.

Imagine your daughter is a pole vaulter at the Olympics - her family and friends are there too. What about their content and their desire to talk with others?

There is more. Microsoft is upping the ante for the Xbox as a TV channel.

Bach announced that hit TV programs from ABC Television and Disney Channel will join the Xbox Live programming available for download directly to the Xbox 360 console. In addition, MGM will bring its library of hit movies.

Under the agreement with Disney-ABC Television Group, later this month, all U.S. Xbox LIVE members will begin to have access to select TV shows and movies from the ABC Television Network, ABC Family, ABC News, Disney Channel and Toon Disney as part of an agreement with Disney-ABC Television Group. More than 500 hours of content, in both standard definition and high definition when available, will be offered including hit ABC Television shows “Lost,” “Grey’s Anatomy,” “Ugly Betty” and “Desperate Housewives.” Past and current ABC shows will be available on demand, with new episodes arriving on the service the day after they air on television.

Under the agreement with MGM, Xbox 360 will offer MGM’s legendary movie library on demand for Xbox 360 including such titles as “Rocky,” “Terminator,” “Legally Blonde,” “Silence of the Lambs” and “Barbershop.” United Artists, an MGM sister company, will also make select films available on demand.

With more than 10 million Xbox LIVE members and more than 3,500 hours of premium content, Xbox 360 has established itself as a premier platform for on-demand TV shows and movies, including impressive high definition experiences, for TV.

“Xbox LIVE Marketplace is the destination for high-definition movies, TV shows and music videos,” Bach said. “And, with the new Disney-ABC and MGM partnerships, we are bringing even more compelling high-definition content to people through their Xbox 360.”

My bet is that by 2009 the traditional channel of TV and the idea of making your money constraining viewers by a schedule and by geography will be dying fast.

So if this is the timeline for economic death, what is the new economic model for those in TV today?

I will be talking more soon.