I like to imagine the cable companies seeing this story, then turning to each other and saying “shit just got real.” This is a good synopsis of why this is the damn-breaking moment for the death of broadcast/cable TV from Mike Hudack:

The lack of live sports was one of the #1 things holding people back from canceling their cable. Now all XBOX 360 Gold members can get live sports on their XBOX 360. This is huge. Expect a new wave of cord cutting. All led by Disney/ABC — the most progressive mainstream media company out there at the moment.

This is great news for independent producers. Cable companies are going to increasingly embrace Web content and traditional media companies are going to increasingly embrace the Web. The playing field is leveling out — the entrenched competitive advantages of mainstream media are being smoothed away.

Everybody do the Internet TV dance. Get ready for a billion channels. And still not finding anything to watch.