Skype Founders to Launch Streaming TV Service

Skype founders Janus Friis and Niklas Zennström have begun a limited beta test of a new, streaming broadband television service. Codenamed 'The Venice Project,' the service promises "near high-definition" television supported by advertising.

Like Skype, this service would also rely on peer-to-peer technology instead of central servers. Similar to torrents, the more people viewing a program, the fast you will be able to stream it on your PC.

Funding for the venture comes in part from the proceeds of the $2.6 billion dollar sale of Skype to eBay last year.

The Venice Project will not compete directly with Google's YouTube, but instead offer conventional, advertising-supported television programming and eventually pay-per-view options.

With more networks publishing television programming online, this market is getting more crowded all the time. But there still is no clear winner in the market. Friis and Zennström are banking on this opportunity to grab the market lead before anyone else steps in.