Without cluttering my reply with quoted text from Morgan, I'll just add my two cents to an already well-worded post.
I used to have DirecTV, but the main reason I had kept it the past few years was in order to watch Dodgers telecasts and hear the legendary Vin Scully call home games (plus the away games in San Francisco, San Diego and Phoenix); on television, he calls the entire game, as opposed to only the first three innings on radio.
Well, as you may have heard, for the past two seasons the Dodgers' new owners made a deal with the devil and moved all the games to "their own channel" on Time Warner Cable. Said TWC wanted to charge so much for DirecTV and the other companies to carry the channel (their own fault for promising the Dodgers more money than the U.S. Mint prints in a year) that literally all the non-TWC companies said no. After a while, with no progress being made, I shut off my satellite service.
I had already bought a little Zenith digital television box and hooked it up to the ancient antenna in my building's attic, discovering that I live close enough to Mount Wilson (where all of L.A.'s television transmitters live) and had enough of an unobstructed path to there that I get great off-air reception, including subchannels. How great? Well, excluding non-English language channels, home shopping, and religious networks, I have a selection of 31 channels. No, wait, make that 32, as the new Comet sci-fi movie channel debuted today on 56.4 (bumping The Works to 56.8 in the process).
Now, I will grant you that I'm in a good position, reception-wise, and in the #2 market in the U.S., so practically everything that's available is on a subchannel somewhere, but I'd settle for half, or even a third, of what I get, because the price is right. FREE.
You are right on the mark when you say "broadcast television should be thriving in the age of cord-cutting". I think the problem is that there is no marketing of these channels. Why isn't KCBS running the occasional promo for Decades on 2.2? Why doesn't KNBC promote Cozi on 4.2? KABC touting Laff on 7.3? KDOC promoting MeTV on 56.3, Comet on 56.4, The Works on 56.8? KTLA plugging Antenna TV on 5.2 and This TV on 5.3? KCOP running spots for Buzzr on 13.2, Movies on 13.3, H&I on 13.4? They might find that there is an audience out there ... an audience they can tap into for ad sales, even if it's just a "bonus spot" incentive for a buy on the main channel.
The problem is that relatively few people know these channels are out there, unless they either cut the cable/satellite cord and investigate broadcast's offerings as a result, or if they never had cable and found these channels from having to use a converter box post-2009.
You might calling it a classic example of cutting off your nose to spite your face.