I imagine a future of televison as follows:
Thousands and thousands of channels.
Most are free, like amateur podcast-type channels, but the better the channel is, the more content on the channel people want to watch, the higher the price. You'll be charged a monthly fee to watch all the television shows on the channels you choose.
For example, I want the following:
History Channel - $1 a month
Discovery Channel - $1 a month
NBC - $3 a month
CBS - $3 a month
ABC - $3 a month
FOX - $3 a month
Comedy Central - $3 a month
HBO - $5 a month
TwiT - free
So, I pay $22 a month for my 9 channels. There will be a 'live' feed within my channel, and also archives of all the shows on the channel always available for me (no need to have a DVR)
I can change my channel arrangement whenever I want, but when I drop a channel, I lose all content associated with this channel. Sort of like 'renting'.
In the first few years, with Apple's huge cash hoard, and to get networks to agree to this, will sign agreements with the networks to pay them a minimum fee regardless of how many people will sign up for their channels. Thus, where Comedy Central might earn only $X from Comcast and Time-Warner, Apple will match that.
And people will be able to have their own amateur 'channels' just as accessible as professional network 'channels'. This will be the same revolution as bloggers have done on the internet competing with newspapers.
I'm guessing this is more in line with Apple's plans.