Not sure your market or cable company. But in Berkeley (and SF) with Comcast under on-demand I have a section called "TV Shows", the "All Shows" section lists about 300 TV shows.Each with about 8-20 episodes. All On-Demand all with rewind, pause etc. The exception is it won't let me FF through the limited ads embedded in the streams.
Assume this was all current content. How much would you pay for this service? With Ads? Without? Because its not anywhere near the $10 price you're paying now for Netflix or Hulu.