DVR and the internet is killing television. We need to have a new metric to measure including DVRs.
The Nielsens already measure DVR viewing, and also measure that only about 40% of viewers watch the ads (an old stat, may no longer be accurate and I'd imagine if it changes over time, it will go lower.)
As for the internet, that's where all TV is headed, so they need to learn to play together nicely (and that's already started).
The real problem is that TV (broadly defined) has split into two general markets.
One is exemplified by CBS - the remnants of what used to be the mass market; cop shows, sitcoms and reality TV; still large enough to be ad-supported - for now.
The other is exemplified by Netflix - niche appeal TV for niche markets; must be subscription based. This also encompasses cable, but Netflix is the ultimate example of where the whole subscription ecosystem is headed.
Other than CBS, broadcast has the dilemma of having to compete with subscription-based niche programming without the subscription revenues. Smash
is just the latest victim of that split. It was originally envisioned for Showtime and might have been a lot better there, or at any rate, 4M viewers would have been enough to keep it going, and nobody would worry about the demo.
Everything interesting in drama, comedy or documentary will end up on the Netflix system. The CBS system will exist in some form, focused on live TV - competitions of some kind, especially sports.