Going back to cable isn’t the answer. It’s a failed model and needs to die.

Defined narrowly enough, yes, that old model is dead.

But more broadly, as an economic matter there will always be a business model for having a basket of content, with some portion of historical content (classic movies and tv shows from decades past) on demand, some ongoing/current on-demand content (last week's episode of some scripted show), and live broadcast (sporting events happening right now). Build up enough of a catalog, charge a single price to subscribers for access to that content, and people will pay for the entire bundle. And because each subscriber is interested in a different portion of that bundle, the mass of subscribers essentially cross-subsidizes the fat tail of niche content: I don't mind paying for your niche if it means my niche gets to survive.

The technological and cultural changes have deemphasized the importance of cable's live delivery mechanism of 100+ "channels" each with programming on a specific schedule, but the core business model still will be there: subscribe to content and you can get some combination of live channels and a catalog of on-demand content.

The content owners, through either carriage fees with the cable/IPTV providers, or through the streaming services, or everything in between, are trying to jack up the price to see what the market will bear for those bundles. They might miscalculate to the point where the subscriber count drops so much that their overall revenue decreases even with a higher revenue per subscriber (and I actually think this is about to happen). And then instead of a market equilibrium where almost everyone pays a little bit to where there's a huge bundle of content available, the little niche interests just can't get a subscriber base and aren't made available, even if the content is already made.