I think we have all watched Internet TV on our PCs. A small group of us have even hooked up the Internet feed to go to our TVs. It isn't that other companies aren't doing this, it's just an indication that we are changing where and how we get not only information but also entertainment. Why would I want to watch a show on a "normal" TV when I can interact online at the same time. I personally envision a large display sectioned off into various windows. The main window is where the family is viewing a movie/show, then other windows either on the main monitor or on hand-held devices (maybe a mobile phone) where mom, dad, and the kids can chat online and interact not only with people but possible extra content related to the show they are watching.

Back to Web-to-TV and time warner. Interesting they say that Internet TV to your home big screen will happen in about one to two years in a BIG way. I think that a bit optimistic as there will surely be some large kinks with hardware, bandwidth, and mass initial acceptance.

Here's an interesting read for more information on this subject: Is the future of TV on the Web?