Hmmm..... Count me on the other side of this battlefield which sees the paradigm shifting in favor of a la carte content distribution rather quickly, and frighteningly, if your business model depends on double dipping for revenue (movie theater + Blu-ray/online stream/TV broadcast).
One issue that makes this shift complex is the generation gap. For baby boomers and 35+ adults, the path of least resistance to content will be the old fashioned way: broadcast television, blu ray, and the movie theatre. For younger audiences the path of least resistance to content is Netflix and Hulu. End of story. Game over. I don't even want my cable TV subscription for live sports. Weather.com and guardian.co.uk cover most of my news needs. Whenever something major is going down all the major TV news sites offer live streams. I'm OK with cutting the cord with respect to cable TV, as is most anyone who grew up with the internet.
I think both forms of distribution will exist side by side for a little while but ultimately traditional television is going to fade away in favor of direct internet streaming. I feel confident that by 2023 there will only be two major broadcast networks, probably a handful of cable channels, and then 400 different takes on live sports as that is television's outpost of last resort.
How the movie theater has survived this long is actually somewhat astounding. Especially in this era of everyone walling themselves behind social media and technology. The communal act of viewing movies in a theatre seems downright contradictory to many trends in society.
You are quite correct about the pardigm shifting. I see that and so do the folks that run media companies. But I fundamentally disagree that it is an age equation and that young folks have no need or desire for network TV. They still watch it in droves. Much of it crap like all these singing contests that get huge numbers. But also scripted programming as well. Saying that network TV is going away because young people get their content from Hulu and Netflix is sorta like me saying only snot-nosed kids use iPhones, blog or have FB accounts. We know that folks from 8 to 88 use those new forms of communication.
Ultimately, content is king. And the studios control it and how you get to see it. CBS, FOX, ABC, NBC ... they aren't looking to kill their networks and move content to new platforms as a replacement for old. They're looking to mine the new avenues for distribution while keeping a firm grasp on programming their good old-fashioned networks.
If you look at numbers, and you should be aware by now that I hate numbers (except for big ones on checks made out payable to me!) that some network programming is showing all-time highs in viewership. Look at the Big Bang Theory (especially since many Disney fanbois make that cast of characters look totally normal!) the numbers they are pulling in now after six seasons are amazing. The Inside the Dome miniseries that airied tonight on CBS opened to 13 plus million people last week in the deadest time of the broadcast cycle. Networks are now programming Friday again actively and even Saturday gets some attention, after being given up for dead in the 90s.
People of all ages flock of live TV events whether they are the Super Bowl or the Dancing With the Stars finale.
Just like video not killing radio or TV not killing movies etc ... new platforms won't kill the old. They'll change them, for sure. The picture will be different, but TV has morphed since its inception.
The same is true with theaters and the film industry. You can't beat the experience of going to a cinema with hundreds of strangers (or maybe a few depending on what you are seeing, where and when) and having the group experience of watching a new piece of entertainment on a huge screen with state of the art sound. I don't care how nice your home theater system is (and I have friends with very impressive systems) it isn't the same as watching a new film like Star Trek Into Darkness unspool before your eyes with strangers. And that experience will never be replicated on a phone or tablet. Those are fine for a child on a plane or in a resturant they don't really belong in. People -- most that is -- are not going to give up the cinema to watch Iron Man 3 on their iPhone.