For me, HBO Go does it right. My parents have cable and I pay for their HBO just for the HBO Go subscription. It comes with their ENTIRE archive of TV shows, every single episode of all their shows. Not to mention, I was able to watch Game of Thrones episodes as they came out the next morning before spoilers could make it to me, not much different than waiting for a show that airs in the east coast to hit prime time west coast.
Fox's problem is that they did this mid-season and they started with a FREE business model and then took it away. You can't give someone something for free and then half way through take it away and make me pay for it. It wouldn't make sense for me to want to pay for it, of course I would resort to something else.