I dont see how this saves money at all, unless you watch very few shows.
Lets say each season lasts for 5 months, 20 episode average once a week. My bill is $60 a month for TV (Comcast, not an introductory rate, full on price for 2nd tier tv, internet extra, I dont know where people are getting $100 for tv unless they are getting HBO and the garbage package with such hits as The Knitting Channel and MTV13), so thats $300 for a seasons worth of programming for as many shows as I want during that period.
After counting all the shows that I would not want to miss during the fall season I got 7, those are just the ones I dont want to miss, there are many others I could live without but still watch when nothing else is on. Thats $224 worth of itunes downloads for 5 months of content.
That savings sucks when you consider it doesnt include all the other shows I would watch with normal cable. Add just a couple more "must haves" and you are no longer saving money. Now throw in a family with differing tastes like kids programming and it becomes WAY more expensive than cable.
Buying shows simply is not the future, its not cost effective except for the people who watch a below average amount of TV. TV is meant for the subscription model, Netflix and Hulu have it right, Apple isnt going anywhere with video until they get a subscription service going. I think if Apple were to offer an expensive subscription service, like $30 a month then it would be a hit, theyd have way more leverage with shows than Netflix and Hulu at $8 and would still undercut cable significantly.