Onlive, in case you have not hear about it, is a service that runs games for you and sends data i realtime. Pretty much the Game equivalent of digital TV. Here is a quick walkthrough:
http://www.youtube.com/watch?v=h0CeHuvw1FwI was a bit skeptical about issues like lag and availability, but it actually seems to be working quite nice!
I think this can have huge consequences for games as it increase the reach of games ALOT (anyone with TV + box can play) and it would also allow for shorter time based experiences. For example you could have a virtual museum tour for 5 bucks that lets you walk around in a simulated environment for X hours. With normal software you cannot limit time for the consumer like that + it gives much quicker access (no download time, fiddling with installation, etc). What I wanna get to is that this might actually be a big breakthrough for not-games, as I think this might be a more fitting format (because it allows shorter and different experiences).
Of course Onlive comes with issues (like the whole ownership thingie), it is not yet tested full scale (only alpha probably means not so many people are using it as will later on) and it might turn out to not be profitable... yet! I do think this is what we will see more and more of in the future and that it might even turn out to be as common as cable TV in 10 years or so.
What does everyone else here think?