$110 annual fee is less than 10 bucks a month. Something similar is being paid for sports channels here in Europe as well, sometimes even more. But this is for additional television channels that offer live footage.
So I think online services need to make sure people can watch them on their regular (HD)TV in the living room, instead of watching at the PC screen. Maybe the content providers can realize this by offering a streaming device that sends the images from the PC to the TV?