But, I don't really think so. I think there are a LOT of people that don't really care about the news, history, etc. channels enough to pay a bunch for them. They don't care enough about ALL the sports packages out there to pay a lot for all of them.
In my case, ESPN alone takes care of 90% of what I would want cable for. Just for that, $20 is pushing it for me. I just don't watch regular TV and neither does anyone in my family. Through other sources (Amazon Prime, NetFlix, RedBox, buying DVDs and BluRays) we handle our entertainment wants. It's the sports issue that kind of sucks.
So, Dish's proposal solves that. But I won't pay more than that. That's the whole point in the first place. More competition WILL happen and I think it will HAVE to be soon because if you are late to the table on this, you risk not getting a seat at all. That tells me prices will drop a bit, though I don't expect it to be much lower than $20. You'll see them bundling, or making real a la carte plans as I said in order to provide value.