The "contract" language is totally bogus, of course. But TiVo does totally subvert broadcast television's source of income. Unlike with VCRs, it actually becomes practical and convenient to watch plenty of broadcast TV without seeing commercials. Except for live events where watching in real-time is a priority, there becomes little reason to ever see them, and obviously advertisers are going to respond by not being willing to pay as much money. Ultimately,
I don't see that broadcast TV could survive TiVo in every pot.

so...

can anyone tell me why I'm wrong that broadcast TV couldn't survive universal TiVo?

can anyone suggest a palatable model for TiVo users to pay for the shows they watch? (I'd hate to see a model like the current one by which blank media purchases subsidize major record labels...)

are people willing to just say good-bye to 'free' ad-supported broadcast TV as a model that has become technologically outdated?

I don't have a TV let alone a TiVo, but I block some web ads with Proximitron, so I'm a "contract-breaker" too.