It's just an assumption then that the lost cable subscribers are cord cutters using Internet video, and not people who can no longer afford any service, or people who had to move because of foreclosure or no longer being able to afford their mortgage in this economy? Or people who lost their jobs?
And the Internet video services are only going to be as good as the content providers will let them be. If Disney suddenly wants to force Internet video services to charge per subscriber if they want to carry ABC and ESPN shows, even if those subscribers don't watch, then where will all of this be?
That's what happens to cable, satellite, and telco TV right now. It would be naive to think that the content providers won't try to continue the same thing with the Internet if they lose TV revenue.