Before too long, we may see Internet providers start to include services such as unlimited music streaming in their plans, as a little added incentive. They'd just need to do a deal with one of the growing number of services offering unlimited music. TV and movies might be a bigger draw card, even if a standard contract only includes two movies a month for free. That kind of price war can only end in one place: unlimited streaming for movies, TV and music included as standard in all internet service contracts.
That would put the pay TV operators almost completely out of business. They'd need to change drastically, perhaps becoming one of the preferred providers for ISPs for online offerings, while still selling sports-only packages for enthusiasts and certain businesses.
Mokalus of Borg
PS - The full transition would take a while, though.
PPS - iiNet is the most likely Australian ISP to try this first.