The question is... how fast?...
So, what are the key points of this shift in user behavior for the traditional TV business?
"Networks" are completely meaningless. We don't know or care which network owns the rights to a show or where it was broadcast. The only question that's relevant is whether it's available on Netflix, Hulu, Amazon, or iTunes. This means that one of the key traditional "businesses" of TV--the network--is obsolete.
The majority of what we pay our cable company is wasted. We get broadband Internet from our cable company, and we use that constantly. But we also get 500 channels that we almost never watch, along with a couple (HBO, Tennis Channel) that we pay extra for and do watch occasionally.
We rarely watch TV ads, and when we do, we're usually doing something else at the same time--like typing. Also, the ads seem startlingly intrusive, because we're not used to them.
More directly, what this means is this..."