Offering video on the web opens up so many more options then the current methods, and many more revenue models. As you mentioned, the ads can be updated to be

Offering video on the web opens up so many more options then the current methods, and many more revenue models. As you mentioned, the ads can be updated to be the most current since the video is being streamed right then and there. On top of that, the networks can easily have more targeted and relevant ads. They can track all of the shows people are watching, and know exactly how many people are watching them. There are additional hooks for people to discover new shows. You can have different subscription models, with the free version allowing people to watch only the most current episodes, then being able to pay additional to see all of the previous episodes and seasons. People can pay to not have advertising if they want. Plus any other combination or other pricing models that you can think of can be used. In exchange for giving up control, they would gain an incredible amount of flexibility on how the content is priced and used. They are crazy for not moving ahead with this with the amount of money they could make off of this. *Edit:Grammar fixes