For all the "the model no longer works" comments: what's the proof? The number of people I know complaining about the model is dwarfed by the number of people I know who have cable and have been watching stuff on both TV and online all day long.
I've seen a lot of legitimate complaints about how they're handling the time shifting stuff (which, surprisingly to me, has mostly been along the lines of "it's too easy to find out what happened" instead of complaining about the time shifting in the first place), but I don't see a big hole in their delivery system. They don't want to give people less reason to have cable -- and for all the money they could possibly make broadcasting the Olympics for-pay to non-cable subscribers, that's just a couple weeks every couple of years. The real win for them is if you still want to maintain a cable subscription.