Don't be alarmed, be glad.
Because this is just hastening the end for satellite and cable companies as more content providers move to internet streaming. After years of saying it will never happen HBO is doing it, now CBS is doing it, etc.
In 10 years the TV viewing landscape will be remarkably different and it is my most sincere hope that Comcast goes the way of Blockbuster.
I agree that internet streaming will become much more common in the future. Yes, many, many more channels will be available. We have hundreds of channels available now through ROKU, Newfix, Huluplus, Prime and Acorn.
I disagree that Comcast and satellite providers will be a thing of the past. Why would you hope for LESS competition. I'm fine with internet streaming competing with Direct TV AND with Comcast AND with Verizon.
I think that we need to remember that we are not talking about a system for the most technologically savvy among us. In the future, if it is to change drastically, there needs to be a system which is as easy to use as Comcast or Direct TV. Just having 500 channels available through streaming is grossly insufficient.
CHALLENGE 1 - BUNDLING
How will a consumer pay for all the channels he wants. Paying for them a few at a time sounds great, but the transaction costs are also great. We may think that Comcast and Direct TV are expensive. Unbundling the services and channels may be much more expensive.
Also, the smaller market channels would find it difficult to compete. We have lots of Discovery and Science channels because they are bundled. In the end, we would move the bundling to internet streaming. Channels could be purchase one at a time (I think that DISH allows that). However, the NBC bundle would include perhaps 50 channels. You would end up making up your own packages, instead of choosing from the relatively few that are now offered. For most folks, that will be a pain in the neck. There would end up being services that provided major bundles that include other bundles (perhaps the kinds of bundles that we have today).
Will internet streaming provide a more efficient market for sports programs? Perhaps. What about movies for sale? This is already available and fairly efficient.
CHALLENGE 2 - BANDWIDTH
There is an increasing issue of what to charge for what speed on the internet. This may go away, or not.
CHALLENGE 3 - SERVICES SERVICES
There are lots of services that Direct TV provides that aren't generally available if I watch a ROKU channel. Think of all that you now take for granted:
DVR's and the menus associated with them
the ability to watch and record in any room, and continue in another
the channel menus, channel lists, record capability
I may be able to get the channel content as cheaply over the internet in the future. It is difficult to imagine the robust systems being developed by totally new companies in a few years.
BOTTOM LINE
I suspect that companies like Verizon and Direct TV will move to the internet market. AppleTV is trying and doing a poor job. So, sure, maybe the cable companies will be gone. But I don't see Verizon, Direct TV and Google going anywhere. The vast majority need someone to bundle content, provide equipment and provide associated service to make it very easy to watch.