The TV side of it doesn't appeal to me, Video-on-Demand does however !
Of course, it depends on them scope of the catalogue - it would need to be seriously content rich and stock all genres, not just the mainstream stuff.
Theoretically, there's no reason not to stock everything and anything, as it's not a traditional brick and mortar world where shelf-space often dictates stock - if it's popular, stock it, if it's not, don't. (one size fits all)
It could happen over here in South Africa soon, however, your average DVD sized movie would cost you R450 to download and for it to stream in over a 1mb line, it would need to be 320x240 in size.
Hmmm, something doesn't quite addup there
