reply to elray
Re: Why should they? This.
The content companies don't care where they get their cash from, as long as they get it. But $8/month won't cut it for them.
Remember what happened with Netflix recently: when Netflix was an 'also' video service companies were scrambling to sell rights to Netflix; when it became an 'instead of' service they started demanding billions for rights or just refused to sell at any price.
I'm sure they'd rather get rid of the cable companies and the affiliates (though the cable companies will just screw us on internet access to make up the difference. It's the affiliates who are screwed in the long run.) But they're not going to buy in unless they see the same kind of money that they get now (which is less than they got 20 years ago, and they're really not happy about that). And every broadcast and cable executive is determined to go down fighting before seeing the market for TV go the way the music industry did -- panic over napster pushed labels to embrace iTunes, which destroyed the idea of album sales in favor of singles.