dkap - 9:45 pm on May 14, 2013 (gmt 0)
Not really considering people are willing to spend $20 on a season of a TV show on DVD it works out about the same.
That's a pretty small percentage of any given show's audience, though. I'd guess they lose 80% of viewership by charging $0.99 per episode. It would weed out all but the die-hard fans.
Imagine the typical person that watches 4-5 shows a day. You don't think they'll balk at $120/mo for just hand-picked series, without the current boredom fallback of hundreds of channels to flip through for a similar or lesser price? You'll end up with most people watching a ton less TV, which isn't a bad thing but isn't exactly what the producers want.