It can but it won't work as you think. The math is not as people think here. They usually do the math like this: 200 channels for $100/month = 50 cents/channel. "I" like 10 channels so my al-a-carte bill should be about $5/month to get the channels I actually watch.
Now think that through. Suppose Apple had a solution that would involve cutting your own company's (wherever you work) revenues from 100% of what you are making now to 5%. What would happen? With a 95% cut in revenues would your company be able to keep up the exact same level of production? Certainly not. Would everyone's salaries stay the same (or would they get a raise this year)? Certainly not. When people get pay cuts or laid off do they keep doing their job anyway? Few might but most won't. Would quality of production stay the same? No. Would your company even survive a 95% cut of revenue? Probably not.
What happens in the dreamworld where the revenues get severely cut for Apple's benefit is that the money that fuels the cost of production disappears. But that only means the good shows will prosper and the bad shows will fail, right? Not exactly. You have to have a lot of surplus cash flowing into this machine to motivate the risk to create the new shows that will be the "good shows" we want to watch in 3 years, 5 years, 10 years. New shows are loaded with risks so there has to be high return potential to get them backed. Pinch that potential and nobody wants to risk much- if anything- on new shows. No new shows means that when the current "good shows" run their course, there is nothing to replace them.
Commercials added $49 Billion dollars into this revenue stream last year. 300 million people in the U.S. divided about 4 per household = about 75 million households. $49 Billion divided by 75 million = about $654 per year that the commercials contribute toward programming that we don't have to pay for (in the al-a-carte with no commercials dream). $654/12 = $54.50 per household per month. Get rid of the commercials and either that has to be made up for from us consumers (which is far from $5 or $10/month) OR that money no longer goes toward paying the people that make the shows and motivating the entrepreneurs to take a risk at developing new shows.
I love the dream. But it just doesn't fly when one thinks it through beyond what's best for Apple. All the people that make shows and all the people that take the risk to make new shows all want to get paid too. They don't want to cut their revenue throats just to help Apple become the dominant owner of this space (too). What's in an Apple television package priced dirt cheap for them? Just like Apple, they want to make more money this year than they made last year, not less... and certainly not 80% or more less.
The dream we seek already exists from sources like youtube. There you get no-cost/low-cost production being offered commercial-free or near commercial-free for nothing or near nothing. When, we all reduce our programming bills into $5-$10-$20/month, we take a giant step in that direction on the quality of production. That should represent about the quality of programming we would get in our $5-$20/month dreamworld (cost of production would need to fall proportionately with average revenue).
No one should delude themselves into thinking that only the "good shows" will get developed as that would be the way it is now if there was any way for the Studios to recognize the good shows from the bad. The model of backing best guesses at what might be future good shows only to see the vast majority fail is what ultimately yields the good shows we might pay for in this dreamworld. Remove the money to gamble on a variety of what might become good shows and there won't be any good shows developed. Youtube quality of programming would be it.
But, but, but, "I'm all for the artists getting paid, what if this just takes the money from the greedy Studio executives and the cable & satt middlemen?" There certainly is some money made by those who package and deliver the artists work. However, Apple would want to become the new middleman... probably with their 30% right off the top cut (which is not trivial, and certainly challenges how to make the dreamworld package work while still cost us users only $5-$10-$20/month). Furthermore, whatever Apple cooks up has to flow through pipes generally owned by the cable middlemen. If Apple starts eating into their cable tv revenues, they'll just raise their broadband tolls for us "heavier users". In other words, if somehow we really could cut our cable bill from $100 to- say- $10, expect our broadband bill to rise by at least the $90 to make up for it. Many people have only one source for broadband but for those- like me- with 2 choices, guess what: BOTH are in the cable business too. They will not let an Apple solution take their cable revenues from them while flowing Apple's solution through their very own pipes. It will not happen.
To deal with this latter issue, we have to see rumors of a way to bypass the middlemen (between the artists output and us consumers of their art). That means we would have to have a way to link directly to iCloud without having a relationship with AT&T, Verizon, Comcast, Cablevision, Time Warner, etc. That would need to be a solution that works world wide, so buying up a cable provider or two doesn't do the trick (nor does even buying someone like Directv or DISH). How about Sprint? There's not enough bandwidth in 3G or 4G to have wireless on-demand, al-a-carte cable-tv replacement service for everyone (and that's not a worldwide solution either).
Personally, I think the way to come closest is for Apple to buy Directv or Dish for the direct connection in the U.S. & Canada, look for similar acquisitions around the globe, launch Satts to cover wherever else Apple wants to directly own the link between iCloud and iCloud users and leverage all that toward motivating the artists to do deals directly with Apple. That is heavily loaded with costs and probably not much profit for a very long time. And it still doesn't resolve the other issues touched on above if we users are to end up with a television bill of $5 or $20/month.