This race is rigged. Even if the streaming providers win the telecoms will just jack up the prices on their bandwidth when net neutrality is killed completely, which I don't think is an avoidable situation at this point.
1) Cable TV over Internet -- in this scenario your cable subscription just becomes an app that runs on a wide variety of devices. Watch live TV, DVR, on-demand, etc. with a user interface that is somewhat reminiscent of what exists today. Channels will continue to be bundled and distributed through cable providers (though I expect non-infrastructure owning companies will also be spun off or started up). This scenario is most likely as it is least disruptive to the financial structure that's been set up on the content creation side (also all the big cable/telco companies are building this already).
2) Dissolution of the "big bundle" -- in this scenario, the content owners just decide to skip the middleman and become more like Netflix themselves. For example, Disney decides to just offer their own subscription service for $12/mo which gets you ABC, ESPN and the other Disney channels. Bundling would still happen here, just on a smaller scale. This fundamentally changes the business model though, and it will take a long time for content owners to develop the appetite and model to assume the risk of running a consumer-facing service.
Until the last 2 years or so, the content owners have also been licensing content to Netflix at low prices -- nobody else was interested in their library content so it was a way to monetize the long tail. But now that Netflix has established that consumers are willing to pay for the content, the content owners are raising prices significantly because the content they own had more value than they initially thought. The existential threat to Netflix is not rising distribution fees, it's rising content licensing fees.
Actually going through with this threat costs both companies money, so they will likely work out a mutually acceptable division of profit without doing so. However, if one company thinks the other is bluffing, they may try calling the bluff.
Also, this likely means more expansive for end users.
It's cool to think as techies we could come up with some massive disruption technology, but short of a super blue sky type project, our best bet to leave a better internet to our children is to throw money into tech lobbying.
Thankfully most people live in major metro areas.
The government hasn't spent nearly as much on infrastructure as private business yet far too many think that the same government who cannot maintain highways and bridges sufficiently would be best to handle the internet? Even city governments are scrambling to fix sewer and water systems they invested in ONCE and left to rot.
I still don't see the value in investing so much in broadband other than cellular. Wired solutions require far too much expense, meet more regulatory hurdles, and simply isn't quickly deployed. With all the small businesses available, let alone franchise businesses, there are millions of locations across this country to anchor transmitters. The big stumbling block is the cash to start it all.
Here? I can get 20 Mbit (5 down) in a fairly large town. Some cities have more, but I've seen none where 50 or 100 Mbit symmetric is considered the sort of "lowest tier" broadband (kind of like "at least it's not dialup"). For only 2-3x the price. Why? Because no one with the peoples actual interest kept the reins, they just handed shit over to the six majors and told them to get building. Why would they, when they're already competing against no one but themselves? Cuts into profit, stuff like that.. So you get to pay more in tax dollars for it, more for the service itself and it's way slower. The same seems to be true for korea (et al, the other fast nations), they're not spending more, they're just negotiating harder with those contracted to build it. Now, Sweden is talking about selling it off (since the whole place is shifting right). Predictably, prices are going up and speed increase is stagnating. Idiots, all of them. The free market rocks for optimizing low entry threshold fields and optimizing already existing solutions. It's horrible at things that are mostly infrastructure based, with high cost of entry and nearly all costs being in fixed infrastructure improvement chunks. Highways, telecom, power, water, etc all work the same - if you want to run them free market style, prepare to suffer until you decide to simply join forces and run it jointly without a profit goal bidding it out in small enough chunks to make actual competition possible.