Mark said:
So in a way what you're saying is we could move to a "on-demand mode only." Since the shows are only served up when your digital box is on, let's just do away with cable/TV networks all together and let the view pick what he wants to watch it, when he wants to.
Basically, yes. It's already happening -- TW already offers dozens of "on demand" channels. For example, you can watch the live feed of HBO, or you can watch certain shows and movies anytime you want via "HBO On Demand." There are plenty of premium on-demand channels, and just as many, if not more "free" on-demand channels.
For now, cable TV and FiOS do have some benefits. That's because buying a TV and renting a cable box are relatively inexpensive and simple for most people.
Computers with Windows Media Center or Apple's equivalent (sorry, not an Apple guy) are already capable of tuning in TV channels, DVR'ing for you, playing DVDs, Blu-Ray discs, and so forth. And since it's a computer, you can also go online to watch streaming content. But most people don't have the money to buy a computer
primarily devoted to TV-watching, nor do they want to be bothered with the technical aspect of setting it all up or using a remote to navigate the Windows or Mac OS on their TV. For many people, it's still a "mental" thing, where a computer and a TV are two entirely different things.
Somehow, though, I have a feeling the cable companies will still win in the end. While they may lose cable subscribers, most people who drop cable are likely doing so because they can watch programming online. And who controls the high-speed internet? For most of this region, it's the same cable company. They can make up for their losses on CATV by just boosting the monthly rates for internet. And as someone else noted, if net neutrality does not become reality, the cable company could block content coming from certain websites... but if you get "Turbo" internet, suddenly, those websites work again.
Plenty to think about as technologies converge. It'll be a wonder if "appointment viewing" still exists in another 10 years.