Free TV for everyone! Blog
Of course, every individual storing everything individually would be a extremely inefficient, so what would happen is that each person will only need to express his intention to record everything after which all shows will be available to him from the cloud. At a fee, of course, as it saves the individual from maintaining a sizable storage facility himself. It would be like TiVo on steroids.
Alternatively, but similarly, all TV channels could be recorded by one entity, after which all shows will be made available at a fee.
Sure, the amount of storage required is sizable. Let's say 1000 channels will be tracked. Let's say each hour generates 400MB of video (not HD, but not bad either). That's 1000 channels * 400MB * 24 hours = 10TB, that is, 10 terabyte per day.
This is actually not all that much. For example, online storage facility Mozy in the middle of last year was already storing 15 petabytes. This is roughly 1500 days worth of video from 1000 channels.
This, while Google processes at least 20 petabytes of data... every day.
Storing data on Amazon's S3 service currently costs as little as 5 dollar cents per GB, making the cost of one day of storage a mere 0.05 * 10000 = 500 USD. It shouldn't be too hard to capitalize on these expenses.