The studios are probably right; there is no money in internet content. They're just doing it because if they don't, they'll be living the nightmare the music industry is in when it failed to recognize how the internet would change their industry.
But the writers don't know this; they've been separated from the quality of their work for too long. They don't realize that most of what they produce is crap, and that a commission based pay would leave a handful of writers well off, and the remainder in the same state as their print brethren.
What they do know is that there's some value to online distribution, and they want to get paid for it. Here's the problem: why aren't they, along with the actors who support them, writing for a writer/actor owned internet video site? Startup costs are low, and they're already not getting paid, so what do they have to lose?
I didn't get cable in my new apartment because the strike. This is your chance; entertain me, people.