Again, I too love the conceptual pieces of the idea. What it seems lots of people are still ignoring is the practical. How big is ONE movie to be streamed from this iCloud? There's the iTunes price or maybe we'll finally get some kind of subscription option which will still have some cost associated with accessing the content itself. AND- and this is the important one- there's the toll to be paid to the gatekeepers (AT&T, Verizon, Comcast, Time Warner, etc)- those who control the pipes through which this content must flow.
Paying to rent or even buy some iTunes media is no big deal. But, let's say you want to do what onetoescape wants to do: cut the cable cord as much as possible and then use the "savings" to "cover" their iCloud replacement option.
We know the general fees for the media itself.
We (almost certainly perceive) there will be some charge for iCloud service (someone is going to pay for that NC facility)
We seem to keep ignoring the gatekeeper portion. Movies I've got on my Apple TV tend to average just over 2.5GB. Note what AT&T charges so that someone can stream just 2GB:
http://www.att.com/shop/wireless/devices/ipad.jsp to their iDevice.
Sure, that's 3G pricing for accessing media and our home broadband is likely to cost less than that. But notice that home broadband has already begun to tighten that noose. We have tiers, we have caps. Will the gatekeepers stop where they are or will their tighten those levels so they can make more money? If we don't like the tightening to come, where are we going to go? In my area, I'm fortunate to have 2 (TWO!) broadband suppliers: Comcast & AT&T. When Comcast tightens their tier pricing too much, do you really think that AT&T will offer a much bigger pool of broadband capacity? Some people only have 1 (ONE) choice for broadband in their area.
I think what you see at the above link is inevitably coming for home broadband. Maybe not as tight (and exploitive) as that, but I expect usage above certain levels to involve additional fees (becoming much more expensive than we pay now). Why? There's lots of money in it for the duopolies that control your broadband options. And consumers pretty much have nowhere to go as hardly any competition facilitates buyer exploitation.
AND, have you not noticed that the very same companies that control your broadband are also in the business of selling video programming via subscription? They have ZERO incentive to ever allow a company like Apple to take their video subscription revenue when Apple's streams must flow through their pipes. It's impossible to cut the cord when Apple's solution must flow through the very same cord. I guarantee that any revolution that starts significantly eroding the cash cows of video subscription models will be accompanied by broadband price hikes and/or much more expensive tiered pricing such that it will prove to be (barely) cheaper to stick with cable or satt, including a bunch of channels you never watch.
Personally, I love the conceptual benefits of iCloud-type services. But the reality is that Apple doesn't own the middle ground between their iCloud and your computer or iDevice. Those that do already illustrate that they want to charge $25 for just 2GB (or about 80% or so of just 1 movie stream).
I want to cut the cable cord too. I want the perceived savings of not paying for a bunch of channels I never watch and instead getting what I want to watch when I want to watch it commercial free via iTunes and this iCloud. The trick then is since those between the iCloud and us completely control the pipes, how do they replace all that money they lose should we all adopt the cable-cutter concept? And griping about outdated business models and all that is fine, but it still doesn't change the fact that the only way the middle men support Apple taking their video distribution business is if it somehow makes them MORE money by allowing it to happen. Guess where that "more money" will come from? Hint: not Apple.