This is very true. What Netflix is doing is moving around without the encumbrance of having to carry hundreds of channels of shit like every cable operator in this country does. I have even seen ads from satellite providers saying "nobody can give you the channels that you want, so we just (insert lame excuse here)."
Either you can or you can't.
With Netflix paying for NEW content, they prove it is possible to make money giving people JUST the content that they want, when they want it. Who the hell wants to pay $100 (like I do) for a few hundred channels worth of shit when I can pay $8 to Netfix, $8 to Hulu and $7 to Amazon for a better variety than what I get right now? My $100 tier with Comcast is shit, all I watch is the local FOX and CW affiliates, Ivette only watches Investigation Discovery, and PJ watches PBS Kids and WETA Kids. That's a lot of money for access to ONE channel that isn't available OTA.
And yes, Comcast's On Demand is shit too. You can't possibly compare their On Demand catalog to Netflix, Hulu Plus or Amazon Video On Demand. Not only the catalog is shit, but the user experience is horrible and the UI simply sucks.
It is only a matter of time before Discovery and others make a deal with the streaming providers, it is the only way they can keep viewers as cable continues to lose subscribers. Once Discovery makes their move, HBO and Showtime won't have a choice in the matter, either evolve or die, since there is no way in hell Comcast and others are going to allow us to pay only for the channels that we want.
And please don't feed me a line of bullshit on the technical constraints of allowing each cable box to have a custom list of channels. All cable providers in this country have this feature, otherwise they would not be able to lock you out of premium channels unless you pay for them. This is a software feature, and is available in every cable box and every cable card device in this country. If they can do it for HBO, Showtime and porn, they can do it for normal channels.