People are bailing the cable/satellite game because content is useless on almost all channels. Pick-n-choose entertainment like Netflix has begun to rule. The dinosaur media, corrupt with useless content supported by package schemes, is going to have to rot off a few limbs before it limps into the bandwagon of the future.
If it were that simple. The dinosaur media you mention is always where Netflix and pick-n-choose options like Hulu get their content. If you kill the dinosaur, you lay waste the what we have.
I personally think the "dinosaurs" also known as the people who actually create the content.... could make money in a new format, but the issue is they want "all their channels that bundle with cable" because even those channels bring in advertising revenue which is still what pays for the creation of content.
$7.99 for Netflix or Hulu isn't covering creation of a whole network of content. Netflix originals are great, but would netflix be worth $7.99 for just those few shows? Many of which, Netflx buys from the people you are showing disdain for.