My point is, distribution via the internet is not some magic bullet that is going to bring costs down.
That isn't the goal of TV providers. Lowering prices may be the goal of their subscribers, but the goal of the people we pay is to remain competitive in a changing market and make money for themselves.
What is the prime driver of MVPD package price increases? Satellites don't cost any more today than they cost 20 years ago (as a matter of fact they probably cost less, adjusted for inflation).
How many satellites were up 20 years ago? How many have been replaced at a lifespan of 15 years? If we were still working with ONLY the capacity of satellites in the sky in 1994 there would be a lot less channels on our systems. The number of subscribers have gone up - which helps share the cost - but the number of satellites, uplinks, channels, local market backhauls, etc. have all increased as well.
Content owners get to decide how they sell their content. It is unfortunate for the end user who wants different packaging and lower rates but at the end of the day it is their content to sell.