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News Item: Verizon Communications announced today it is buying Intel Media, the chip-maker's digital TV subsidiary. Terms of the deal were not disclosed.

Brian Fung’s blog post today at the Washington Post ‘s “The Switch” (“How Verizon plans to weaken the cable industry’s grip”) details the potential consequences of Verizon’s purchase of Intel’s media division. The acquisition presages Verizon taking its shot to be the major player (via its FIOS wired network and its wireless operation) in what Fung describes as an “all streaming, all-the-time future.” Streaming video, as Netflix is proving, is eroding the market dominance of the large cable companies. Verizon obviously wants to emerge as a power in the lucrative business of providing content.

How does this fit in with last week’s Court of Appeals ruling that put an end to the FCC’s Open Internet Rules? Well, duh, if an ISP such as Verizon is not legally bound to be net neutral- to treat all content and services that transverse its networks the same- you have to believe they will give preference to their own content. This is the “free market innovation” they are trumpeting.

From the cable industry’s point of view, streaming, on-demand video is the type of “disruptive” technology that Tim Wu discussed in “The Master Switch”. Here’s the twist, though: Instead of the disruption being made by some small, innovative tech company, it is now in the hands of a Goliath who means to swat all the lesser giants out of his path.

It is good to be the king.