The very fundamental principle of using television as a revenue generator is broken. I would gladly pay for a service that allowed me to watch whatever shows I wanted, when I wanted, with no commercial interruption. I am not willing to pay for a service that forces me to watch three minutes out of ten of commercials, and I certainly don't like to adjust my viewing schedule to accomodate the shows I want to watch! It is much easier for me to download shows and watch them later than it is for me to be in front of my television while they are being broadcast. If I want to watch a live event, such as a sports game, I can always head to the local pub and watch it there.
I currently have basic cable and I pay ten dollars a month for it. The only reason I have that is that I purchase my internet through the cable company and, even paying $120 for the whole year, I was able to save a bunch of money on my Internet services ($300 off over three months, plus a 5% discount on my total bill, that amounts to a savings of $240 over the course of a year). I rarely turn it on. Not even for sporting events.
Fix the delivery system and make it more accessible. Charge based on what you watch, rather than what channels you watch. If I was charged $0.25-0.50 per show I watched I would be inclined to watch more. But paying a monthly fee for a bunch of stuff I will never watch? Not worth the money.