Then cable and satellite channels will no longer be subsidized by ads and will get more expensive.
Perfect. Then the cable companies will be forced to offer many of their more expensive channels a la carte, and I'll no longer have to subsidize all the folks who watch networks like ESPN that I don't care about.
Even better, we, the subscribers, will have more of a voice when it comes to the content, and it will no longer be profitable to do stupid crap like airing wrestling on the Sci-Fi channel just to bring in more ad revenue.
I fail to see the downside here. Instead of hidden costs that we pay by buying products from companies who have to make up for all the money they spent on ads, we'll simply be paying those fees directly to the entertainment companies. In the long run, the cost should be about the same; it will just be easier to see the bottom line.