I'm not sure yet. Netflix looks good, but I'll probably get bored with it after about a year. YouTube, Hulu+, and others are yet to be explored. The local video rental store closed, so renting DVD's and BluRay disks are not an easy option. I have some friends with extensive DVD collections, so I may borrow some stuff. The downtown library also has a fair collection of what I watch (documentaries, history, science, technology, how-to, and occasionally anything that is mind numbing).
To keep from tying up a computah and screen, my initial attempt will be either a Western Digital WD TV Live Streaming Media Player, or a Windoze box running some PVR application:
I would go with Linux, but until there's a native Netflix application (that doesn't require Silverlight), I'm stuck with Windoze.
I may also go without any TV. I didn't have a TV for about 15 years of my life, and never really missed it. I'm rather disgusted with the large number of historical distortions, glorified stupidity, amazing factoids, and saturation advertising. Even so, I would have no problem paying for such rubbish if it were all content, but not when approximately 1/4 to 1/3 of it is advertising and self-promotion.
Incidentally, my all time disappointment was the Discovery channel's streaming video. It runs for exactly 5 minutes, stops, waits for the user to click "continue", and then plays a 30 second commercial. No way to get past the commercial without clicking "continue". If ever there was a way to chase away viewers, they have found it.
Another disappointment was testing a Sony and a Panasonic BluRay player with Netflix etc built in. Both of these companies seem to have a service that they sell to the streaming content provider to "allow access" which is a nice term for shaking down the providers for money to host their service. Sony had Pandora on their player, but Panasonic did not. My crystal ball can see where this is going to go, where in a few years, services will come and go depending on contract negotiations with Sony and Panasonic. No thanks.