The on-demand part is only the half of it, The fact that it’s available on anything connected to the internet is the other. So where do Israeli companies fit into this story? Judging by the recent acquisition of 5min media by AOL, Israeli companies are primed to play a key role in unfolding events. Internet company AOL, which itself was spun off of Time Warner Cable, has now purchased a key online video distribution service, not to mentioned the Techcrunch purchase that followed. The connection is simple, Cable companies have finally figured out that in order to stay afloat they need to surf the web and offer content.

According to AOL CEO, Tim Armstrong the company has been “investing in specialized websites to try to reverse falling display ad sales”. With the aid of advanced delivery technologies and the proliferation of networked devices, the TV ecosystem is changing dramatically, and is on the cusp of a Cambrian explosion. So what will our viewing experience look like two, or three years from now?

We will be picking, choosing, sharing and shopping from content custom tailored to our individual tastes and sensibilities. We will also not need to depend on old world infrastructure dependencies such as cables, or a living room; our Flat screen TV, PC, Tablet and smartphone will nonchalantly receive High Definition 3D broadcasts via WiFi. Think about it, no cables dangling under your LCD set, no cable provider to suck you dry for hundreds of channels you never watch!

Streamers are all the rave right now but they’ve already almost crossed the threshold into obsolescence. Smart set top boxes are coming, and they promise to bring with them that custom tailored experience, built in social networking, and the ability to consume all of your digital content on one screen using a remote with one button. Up until now techno-geeks could make something similar using an xBox gaming console and open source software. Next month promises to introduce goodies like this from at least on manufacturer we’ve written about here in the past, and more are very soon to follow.

New technologies are already offering content providers a wealth of new sophisticated tools that allow them to better target their audience, both in terms of content and advertising. These new technologies will introduce many new activities to our networked screen gadgets. Next-generation IPtv gaming experiences that do away with the space chomping consoles are just one such example.

The Israeli tech field seems to be laced with companies filling almost every niche this budding new industry will have to offer. From Hardware set top box manufacturers to IPtv oriented DVB systems, from in-Video interactive advertising platforms to services that locate any clip from any film you like. Multi-device internet TV platforms such as Tvinci’s are paving the way for the next generation of online video content viewers.

The presence of many Israeli firms in such a diverse set of technologies and disciplines more than assures this local industry key involvement in standard-setting future developments. Bloomberg forecasts that “Online-video ad spending is (will) rise to more than $4 billion by 2014 from $1 billion in 2009. This means that we should expect more and more technologies, and services to pop up over the next few years, and the local market here seem raring to go.

The following are just a few representatives of this promising evolving market that are developing technology that will charge the IPtv revolution. You are invited to learn more about them on TheWadi company index.

Boxee.tv - Offering a partially open-source freeware media player software platform and (soon) a set top box that integrate personal locally stored media with Internet streaming media along with social networking features.

Innovid - Technology that converts existing video ads into an interactive dynamic, and targeted experience.

Tvinci – Offering a comprehensive internet TV platform, that delivers and monetizes premium content through subscriptions, Pay Per View and video ads on any internet connected device.

GooMe – provides operators with an advanced entertainment experience by facilitating OTT services coupled with personal TV, web & home media content.

The image above shows the search results for “I’m the walrus” – a line from the Cohen brothers’ movie “The Big Lebowski”.

AnyClip’s comes approximately one year after the official inauguration of company, and after 2,000 of top box office films were added to their database. The database is expected to grow by 3,000 additional films by the end of the next quarter.

If you’re unimpressed by the number of the films, note that the data about any movie can consist of up to 5,000 pieces. Apart from the trivial bits of information, such as names of producers, actors and all the credits, AnyClip’s database contains searchable dialogs, soundtracks and more, via their SceneSearch technology. The data is provided by AnyClip’s internal team and also by external movie lovers.

Their goal is that any moment can be easily found and then embedded elsewhere on the web. People may remember a famous quote but not the name of the movie. These clips from movies, are great “entertainment snacks” are popular on video sites.

The business model is simple – people that will find their dialog or quote might proceed to buying the movie on Amazon or renting it through Netflix. The company has already received acknowledgement in the industry, being a finalist in TechCrunch 50 and winning the Audience Choice in that event.

AnyClip’s R&D resides in Jerusalem. Although being less than an hour from Tel-Aviv and Hertzeliya, Jerusalem isn’t in the “Silicon Wadi”. The fresh mountain air, and $3 million in funding seems to put AnyClip on the right track. Founders  Aaron Cohen and Nate Westheimer now need to prove their business model not only to the tech community that embraces them, but also to the public.

See more about AnyClip in The Wadi index.