I think it's rather inefficient and slightly crazy that YouTube, Yahoo, Hulu and Netflix (and possibly Amazon soon) see it as a business imperative to get into the business of original programming.
The television industry is, if anything, overdeveloped and should, if things were working right, be flooding the new services with programming options.
Instead we see intense brakes on innovation as incumbent industries resist selling their programming through new services. This slows down the development of the new services, but it won't stop them. Instead it will give them the motivation to set up direct competition against the TV programming providers that should instead be profiting.
This would be like if, when cable TV started, the broadcast networks pushed for new laws to restrict cable TV, and refused to license their syndicated shows to cable TV networks.
Oh right. They did that. Worked out great.Stop Cable TV - 1969 ad against pay television