Rather than a pure pay per channel model, you could a hybrid. Still pay for channel packs, but you choose which channels are included rather than the cable or internet company choosing.
Say standard local stations = $10/month
HD Package includes 5, 10, 15 channels of your choice = $10/$15/$20
and so on.
It is still very close to the current model, but it gives more power to the user to select which channels they want to subscribe to rather than the cable companies packaging channels together. Then it's up to the cable provider to distribute funds to channels from the subscribers funds. You would very quickly see unpopular channels go away, and the most popular ones will probably increase in revenue.
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