Stubborn relationship of Americans with their TV The claim that Internet Video won't displace cable TV because of some "stubborn relationship of Americans with their TV" idea is completely false. First of all, TV was new at one time. I'm sure some pundit at the time derisively dismissed the idea that TV could ever take over the relationship Americans had with their radios. In 50 years' time, some other disruptive technology will probably be dismissed for not being able to compete with Internet Video.
Secondly, who's saying that the television set is dead? With a Roku box, I can stream Netflix (and Amazon VOD and a lot of other video sources) right to my TV. I'm watching Internet Video, but the viewing experience is very much like normal TV. Even my not-so-tech savvy father was able to set up his Roku box with minimal guidance. Americans can stubbornly cling to their TVs while watching Internet video.
Santa Monica, CA
It isn't a stubborn relationship.
Its about value.
The typical household has diverse interests, including live feeds, which are only addressed with a pay-tv subscription, not any OTT product.
$70+/month for basic pay-tv service is not unreasonable when you compare it to any other entertainment option.
In my case, sports (which I'm guessing constitute much of your "live feeds") aren't an issue. I actually figured that I could replace most our TV watching with a combination of Amazon VOD, Netflix, and OTA for about $36 a month. So far the only thing keeping us on cable is the DVR (would be expensive in the short term to replace it for OTA programming) and the fact that my cable company gave me a good deal (because we called to complain). If, when the year is up on our deal, they insist on raising our bill back to the original figure, it'll make financial sense for us to cut the cord.