The internet has been the home to humorous videos of people covering songs, commenting on celebrities, playing lightsaber and other entertaining videos for many years, but, there has also been high quality programming made for the internet as well. People  have been making television-quality programming for the internet like Revision3, and many other production companies making content for the internet like Blame Society productions who make Chad Vader. These shows have become very popular and have made web series a common thing for people to watch.
I think that in the future all video will be distributed if not exclusively, at least as an addition to other distribution methods. Another trend that will be growing is video produced specifically for the internet because it allows people to watch h their programming whenever they want asnd whereever they want. One thing that has  happened recently, is that is Hulu, the popular video site has begun to distribute  independently films and series which provides them a platform to share their content without having to go through a film distribution company. This will continue so more people can produce and distribute their content easily and get their work out!