You can download Media Manager for Mac over at Verizon.
[Zats Not Funny]

FiOS, as you might know, is Verizon's fiber optic television service (which is now officially invading all of NYC). It's not full-fledged IPTV yet (since it's not delivered entirely as data packets, as I learned a few weeks ago), but Verizon is implementing a lot of the same feature set that IPTV makes available.

Version 1.5 was mostly about meeting regulatory specifications, so they're just now popping in the big features. The onscreen interactivity feature set is a lot like what cable and IPTV are doing—a pop-up will offer bonus or expanded content like clips or info—and it'll debut with a bunch of NBC Olympics interactive content, which will be the Verizon framework's first major test. Essentially any network can dump content into Verizon's framework, and voila, interactive content ahoy.

FiOS TV 1.6 also adds in RSS feeds from content partners, providing live info like traffic, weather and horoscopes (apparently their test groups really wanted them). Unfortunately, right now, you can't add in your own feeds (like Giz) but the framework is there to do it in the future. Currently, weather and traffic are the ones you'll actually check out. One weird quirk is that you have to pause whatever you're watching before you start reading feeds—you can't pause TV while you're reading.

Starting with 1.6, you'll be able to stream two HD streams to multiple rooms in the house, even with the current boxes—Verizon's goal is to have feature parity across all hardware. But one of the more awesome, though subtle, features is the ability to pause a channel, swap to another one, pause it, then go back—so you could juggle two football games or Heroes and football, whatever. They've also added in filters, so you can have the menu show you just your HD channels, just family channels or just movies, to cut down on the amount of crap you have to scroll through. A fully personalized setup like AT&T showed off is probably a version or two away, though. Scheduling recording by web and phone is in the works too, though it'll start out as a premium feature set and trickle down.

What Verizon is doing that's somewhat unique is a hidden form of social networking. There's a new section called "What's Hot on FiOS." It tells you the top five most popular shows in your area at that second, live. So if you don't know what to watch, you can just check out what everyone else is. This works for On Demand stuff too.

And now for the future stuff (which is actually built into the 1.6 update, but it's hidden, so if you hacked your box....): Integrated web video, of course. YouTube, Veoh, Break and Blip.TV for now. It's sectioned off in the menu, so people don't expect to be blown by awesome vid quality, I'm told. The setup actually uses your PC as a proxy, so you actually have to have it turned on to watch web video. But you can also stream pretty much any video, any codec flavor on the fly, from your PC to your TV. The search engine isn't that great yet, and typing is annoying, but it's nice to see this stuff integrated and easily pushed to your TV. If trials all go well, you'll see this stuff on boxes as early as spring 2009. If not, well, things get murkier.

The fact that most of this stuff will be in people's houses by the end of this year does seem to put FiOS ahead in the feature war, even though Time Warner actually has a bunch of its suped-up tru2way boxes in the wild. Either way, it proves that TV as we know it is going to change, at least a little bit, by letting in stuff from outside the garden, no matter who your provider is.

But first, the basics. The difference between the TV you're used to and this fancy IPFreelyTV stuff is that IPTV is delivered to you like any other data sent over the internet—in data packets. You even plug an Ethernet cable into your receiver box/DVR. Of course, the internet's a messy place with lots of muck bouncing around the pipes and you'd be really pissed if the Yankees game stuttered or crapped out, so this is all running on the telco's "walled garden" network with a fat, dedicated lane for video. (Your internet service, which is bundled since it's running on the same network, runs on a different lane, delineated by quality-of-service, or QoS, protocols.)

Now that that's out of the way, back to why its good for HD. With a standard cable setup, the channels are basically always being piped into your home, whether you're watching or not. To add more channels, they've gotta compress 'em down farther or open the pipe up, especially since HD eats up a lot of bandwidth. Since IPTV is sent in regular ol' data packets and the system is two-way (the nature of internet protocol), they're basically only sending what you ask for, when you ask for it. So theoretically, they could offer way more HD channels than cable, since they're not as limited here. Also, like that mythical Xbox 360 IPTV box, the number of streams you can watch/record simultaneously is basically only limited by your bandwidth.

The two-wayness of the infrastructure is another point of awesomeness. It can be used for actually useful interactivity—one of AT&T's apps for the Olympics can bring in a stats feed you can check out while watching the game. Or regular internet video, like YouTube, can be piped in and integrated with the other video on your box. It's all just regular data over standard internet protocols, so there's a lot of flexibility to do stuff you simply can't with a traditional setup.

The problem is that building the infrastructure necessary for IPTV service is slow and expensive, largely cause it requires a heavy fiber optic component. Verizon runs fiber all the way to your door (which is why it can offer those crazy FiOS internet speeds), while AT&T runs it to the node, which you're then connected to with copper and (which is why U-Verse internet is slower). So right now, both have puny subscriber numbers—1.2 million FiOS TV customers, and a scant 379,000 on U-Verse TV.

Still, there's a lot of potential in IPTV, even if it's taking forever to get to your doorstep. AT&T actually showed me some of the stuff that could be at your door in the 6-9 months—and beyond—and it's definitely worth getting excited about. We'll be telling you all about it later.

Something we missed, or you still wanna know? Send any questions about IPs, TVs, chewing gum or anything else to tips@gizmodo.com, with "Giz Explains" in the subject line.

Turns out it can do lots of media extender tricks, such as stream AVI, MPEG 4, DivX and Flash from a PC on your network. Plus, since Verizon is also in the cellphone business, it's putting together a mobile DVR scheduling software package for its cellphones. Neat stuff. So let's see, FiOS gives you much faster broadband service (15 Mbps download/2 Mbps upload for $50/month), tons of TV channels, a DVR that soon will be able to stream video? Yeah. It's about time the weasel cable companies had some formidable competition. Bring it. [Zatz Not Funny]

In other words, according to Digital Arts Services' complaint, it "indisputably meant that purchasers of advertising time were paying for FiOS subscribers who did not exist." Naturally, Verzion's calling BS, calling it "a garden-variety business dispute initiated by a customer who wants to be released from a contract they agreed to." Guess we'll let the courts decide. [Broadband Reports, Image via Flickr]