Okay, I didn't watch the video because i don't care to watch the video, but I did read the previous article which explained what we're talking about. [http://www.engadget.com/2009/03/24/onlive-killed-the-game-console-star/]
Near as I can tell, it's a new download compression thing, right? Essentially allowing one to play games online with a processor somewhere else actually running the game for you while you play at home or wherever.
So far there has been a lot of flack on the con side because many prefer to own the actual, physical media as opposed to some kind of digital download. And I usually agree with this sentiment. I'm old enough to remember when consoles had a faux wood grain finish and the idea of owning the media I buy is deeply ingrained.
On the other hand, I can see the advantage to something like this and how it may gain quite a bit of ground. And I see it every time I look at my DVD collection, which is probably easily dwarfed by the collections of many here, but still sizable. And I never watch any of it. Occasionally I may pull out a movie to watch, but by and large, I don't watch them. I watch what's on TV instead. Even if it's a movie I already own. Heck, I own several movies I haven't even watched yet.
All my collection does is take up space. Because that is what collections do. Even people who regularly watch the stuff they own, unless they only have a handful of titles, they can't watch everything they own. So they watch something and everything else just sits there on the shelf, gathers dust, and takes up space. It's all just clutter.
Services that allow you to download media like this will be a paradigm shift as a next generation grows up that is not used to buying physical media object, but subscribing to services that provide entire libraries that can be used at will.
There may be downsides to this, naturally, but I think those are outweighed by the upsides. Such as to removal of the clutter in your house. I mean really think about this. Imagine that the media is just as easily accessible as digging out the disc from you collection, so that functionality remains, and then measure the space your media collection takes up in your living room: books, music CD's, DVD's, game disks, etc. and then think of what you could do with all of that space.
I don't know about anyone else, but I have an entire room filled with junk and most of it can be provided by a monthly service fee instead.
So, while I can appreciate many here who still prefer to have the physical media object, all i can say is, guys, one day we'll all be dead and the next generation that is already used to just downloading songs to their iPod as opposed to buying music CD's will hold the floor because they'll be the audience that the industries need to service. Not us.