That article about converting everything to streaming don't make sense.
20 million US DirecTV subscribers. DirecTV NOW is currently pushing out 8mbps per HD stream. (0.008 gigabit)
20,000,000 subs * 0.008 gigabit = 160,000gigabits/second to deliver 1 feed to every subscriber.
(160,000gbps / 8bits/Byte) * 60sec/min * 60min/hour = 72,000,000 GB per hour. 72 PETABytes/hour.
Let's lay that up against CDN pricing:
https://azure.microsoft.com/en-us/pricing/details/cdn/
https://aws.amazon.com/cloudfront/pricing/
AWS tops out their published scale at 5PB per month, and we'd be talking about pushing over 14x that per HOUR.
So let's come up with the most favorable possible pricing here:
The average person watches 5 hours of TV per day:
http://www.recode.net/2016/6/27/12041028/tv-hours-per-week-nielsen
For this ideal scenario, let's say those 20 million DirecTV subs only represent a single viewer each.
Let's also assume DirecTV finds some way to cut their bandwidth in half, and is able to maintain quality at 4mbps. This takes it from 72PB down to 36PB per hour.
So:
36,000,000 GB/hour for 20mil viewers * 5 hours = 180,000,000GB per 24 hour period
180,000,000GB * 30 days/month = 5,400,000,000GB/month
Let's use AWS Cloudfront pricing of $0.02/GB and assume they're able to get a 50% discount at scale.
5,400,000,000GB * $0.01/GB =
$54,000,000/mo in bandwidth distribution costs.
The last standalone DirecTV quarterly financial report was from June 2015, and can be found here:
http://quicktake.morningstar.com/stocknet/secdocuments.aspx?symbol=dtv
Broadcast operations expenses for the quarter ending June 30, 2015:
$118 million
They define broadcast operating expenses as: "...expenses include broadcast center operating costs, signal transmission expenses (including costs of collecting signals for our local channel offerings), and costs of monitoring, maintaining and insuring our satellites. Also included are engineering expenses associated with deterring theft of our signal."
So if they are able to cut their streaming bandwidth rates down to 4mbps, and every subscriber only steams the daily equivalent of 1 feed at 5 hours or less, and they are able to negotiate CDN pricing for half of the current lowest published rates they still spend at least $44 million more per quarter to do so, and that's only after they shut down their satellite distribution network to bring those costs down to $0. Even still, not all of the old $118 million goes away, because they still need to maintain a network to collect local channels if they want to bundle them into the streaming package.
This topic keeps coming up and my head just spins -- even if the engineering were possible to convert everything to Internet streaming, it's financial suicide.