You'd pay $240 a year for b-flicks? I've been severely underwhelmed by what is actually available movie wise on Netflix and Amazon Prime. Netflix has upped the ante by grabbing Disney from Starz, but most of our watching on Netflix has been TV shows.
I don't think it will be b-flicks. And also, there is "good" movies on streaming services now - there just isn't a single service that has all of them.
The thing the industry must know is that the typical process of movie watchers goes like this:
A. If I want to watch a particular movie:
1. Is it on one of the streaming services that I have an account with?
2. Is the price fair enough to buy/rent right now from iTunes/Amazon/Vudu/whatever such that I don't fear buyer's remorse?
3. Go to PopcornTime / whatever other way to see it.
B. If I don't know what to watch:
1. Go to the streaming service of choice and browse around.
2. Go to the second streaming service of choice and browse around.
I don't know a single person that is willing to pay full retail price for a movie just because it isn't on a streaming service, unless they are a die-hard fan that must own it immediately or they are a quality-junky that must own it on BR. Those exceptions are rare and the later is becoming rarer. The idea that if it isn't on streaming it will be purchased is wrong.
If someone want to watch the latest rom-com on a rainy Thursday night with their SO, it's going to be watched using the path of least resistance. It's on the movie company to make sure that path is one where they earn money.