Netflix and others are changing the way we pay for video

[Commentary] The economics of cable and satellite TV more or less dictate that you buy content by subscribing to the basic service and paying extra -- sometimes a lot extra -- to get packages of programming that include shows you want to watch.

Thanks to this system, it's not uncommon for people's bills to exceed $100 a month. But in the age of Internet streaming, this model seems archaic. It's no longer necessary for companies like Comcast, Dish Networks or Time Warner Cable to serve as gatekeepers. In theory, we should be able to access any content we want directly over the Internet without having to subscribe to premium channels. Netflix, Hulu, Amazon and other Internet content aggregators offer a somewhat similar -- but I think better -- model. Like the premium TV channels, you have to pay for programming you don't necessarily want to watch. Most individuals are likely to sample only a tiny fraction of the tens of thousands of movies and programs available on Netflix. But because it's an on-demand streaming service, you can watch what you want when you want to watch it. For me, that is a lot more satisfying than watching premium content on cable or satellite.