Let me explain again. The MAJORITY of people who watch live sports are "casual fans," people with no real rooting interest. Sure, you have your diehards, your home-market fans, etc but in a country of over 300 million, there's more casual fans tuning in than diehards. For example there are more non-WVU fans who watch WVU games than WVU fans, simply because they're on TV and it may be the best game on at that moment. However, once you go to a subscription based-app, you eliminate every single casual fan. I think I speak for a lot of people when I say I wouldn't spend $1 per month to watch a B12 Network, SECN, BTN either through cable or an app. But, I do watch the occassional games on those cable channels.......because its available.
You cant compare live sports to TV shows. Live sports make their money off of casual fans. Heck, we're in the ACC, largely because of casual fans. WVU has a larger fanbase than Pitt but you're either a hardcore WVU fan or not really a fan at all. At Pitt, our diehard fanbase is pretty low, but there's 2.5 million people in Western PA that can be considered "casual fans." If Pitt's on and there's nothing better to do, they watch Pitt. That's what networks look for, the amount of prospective fans, so to speak. TV shows dont have casual fans. Nobody just watches Game of Thrones every once in awhile when they're flipping through and see its on. Nobody just watches 3 episodes of House of Cards per season. You're either a diehard follower of a TV show or you dont watch. Scripted TV shows are absolutely perfect for Internet apps. The diehards will pay a few bucks per month to watch the show just like the diehard Pitt or WVU fans will........but if all sports were done based on internet apps, that's all you'd have are diehard subscribers. No casual fans watching tuning into NBA, College Football, NFL, etc.
WWE was first to do this really with their WWE Network but they have a niche market with absolutely 0 casual fans. You're either a diehard WWE fan or never watch a second. So, by going to a subscription-based network, they're just making their diehards pay up just as they did for their PPVs for all those years.
Question? Do you know why WWE, Boxing, and UFC are on PPV? Here's your answer. All have niche fanbases (UFC is outgrowing their niche fanbase however) and can make more money by making their fans pay $60 for the event than selling it to a cable channel to offer their viewers for free. There's a reason the NBA Finals aren't on PPV or College Football or whatever (I mean yea, the out of network games are but that's different.........and again caters to diehards).
So to recap: Casual fans. That's where the money is made. I hope you took notes because your scenario of mainstream live sports only being offered through a subscription-based app is not going to happen for decades, if ever. Now, niche leagues like the NHL and various world soccer leagues, OK, maybe I can see that in the not-so-distant future because those leagues get very few casual viewers. But the mainstream leagues, yea, not gonna happen. Sorry.