How bad is web video for TV?

Via NewTeeVee, the Freakonomics blog asks, “Is web video really hurting TV?”

Read the whole thing, but in summary it says that entertainment consumption isn’t zero sum. A study of typical web video viewers found that they watched 4 hours of video online but only reduced their TV watching by about half an hour. Most of what they watch online they wouldn’t have watched on TV, and in some cases, watching a preview or single episode online prompted them to watch more of that show on TV.

If this is true, then it suggests that if the right ways to monetize online video can be found, then we may see media companies stop suing internet companies.
It definitely makes the writers strike over new media royalties seem more understandable.