I was going to justify it with the Netflix/Hulu/ESPN integration, but you still have to pay for Netflix and Hulu Plus to use those. I'm sure all of this video going through their systems has an extra cost attached.

Once Hulu Plus hits Xbox, I'm seriously considering paying for it and Netflix and dropping my satellite. There's no such thing as appointment television for me without Lost and 24. Really, the only thing we'll be missing is Colts games unless ESPN3 picks them up, which I doubt.