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Netflix, Blockbuster, and streaming content ... what impact?

I've been seeing a flurry of new streaming service offerings, proposed or
actual, such as Netflix, where it appears that they may be shooting to
eventually ditch the mailed-DVD approach and just do broadband delivery of
content.  Might be a ways off, but they're doing the streaming now.


So we're potentially talking 4Mbps streamed at a customer for 2 hours at
a shot, 500KB/s, 3.6GB of data.

I know I've mentioned this several times in the past as a "coming
challenge," and various parties, including many of our Australian
networking friends, have expressed skepticism (and implemented
quotas, etc).  Yet it seems ever more certain that we're going to be 
seeing an explosion of video over the Internet, and sooner or later 
our rural areas, and all of the Australians ( :-) ), won't want to 
feel like left-out, second-rate Internet users.

I see the current situation as being a gateway of sorts.  Clearly,
there are fortunes to be made and fortunes to be lost on this sort
of thing, and I suspect that if some company is successful at this
sort of streaming, we'll suddenly see a lot more business plans
that involve Internet video delivery.

This would seem to present some challenges to networks today, and
probably more in the future.  This would seem to be a pivotal time of
sorts, are our networks planning to meet this challenge by providing
the capacity, or are we going to degrade or limit service, or ... ???
What are networks doing today about these issues?

... JG
Joe Greco - sol.net Network Services - Milwaukee, WI - http://www.sol.net
"We call it the 'one bite at the apple' rule. Give me one chance [and] then I
won't contact you again." - Direct Marketing Ass'n position on e-mail spam(CNN)
With 24 million small businesses in the US alone, that's way too many apples.