The issue with cable TV is twofold:
1. The linear programming model where programming is organized into “channels” that show specific content at predetermined times. This model is dead and cannot be resurrected. Consumers want content that is accessed and consumed on demand whenever and however they want, not according to someone else’s idea of when and where it should be viewed.
2. The business model (broadcast advertizing) that has evolved over the past 90 years to support linear programming to a mass audience. This model is also dead. Subscriptions are the only viable model going forward, and that has profound effect on who will survive and thrive in this new world.
The latter is the bigger issue for current providers. I doubt many will make the transition to the subscription-based demand-driven alternative.
Consumers want content that is accessed and consumed on demand whenever and however they want
Cox Cable On Demand is terrible, but sometimes I prefer it, because I can stop and start as necessary. Sometimes I even DVR a program to watch later and fast-forward through the commercials. I typically watch more Netflix per week than networks.
Subscriptions are the only viable model going forward,
Netflix sort of started that. The problem is that too many separate entities (networks/corporate heads) will try to start their own. The idea will then be splattered over dozens of websites. Many of those websites will not be updated regularly, etc. Content sites could easily get lost among the billion websites.
CBS and HBO are already experimenting with Internet subscriptions that bypass the cable/satellite companies. I have not checked CBS, but if they are, like Hulu, embedding commercials and charging a subscription, they might not find success.