Decreased revenue and therefore volume of production isn't necessarily catastrophic. Online streaming decreases costs and exposes content to more people. It's possible that if we kept current production rates up we'd end up with too much content.
Weeds, Dollhouse, Firefly and Person of Interest are all shows I missed on their terrestrial run, but picked up on Netflix. Under the old model these would have been wasted product, like sending good food to a landfill.
This is a bit dated and has been posted here before, but Kevin Spacey on the benefits of producing for Netflix