Local channels are suffering due to Netflix streaming services. Subscribers to Netflix are now able to watch what they want, when they want. No longer do we have to wait for our shows to come on television, all we have to do is pick what we want to watch, stream it via television or computer, and it's that simple. Local channels are no longer being watched as much.
Netflix and other streaming services often do not begin streaming shows until they have already been shown on channels. Netflix carries many shows that aren't shown on television channels, and there are many television shows that aren't shown on Netflix. There is discrepancy in what is shown on television channels and what is shown on streaming services, so there isn't much competition.
I do agree that some local channels are suffering from services like Netflix but this only applies to the few networks that didn't capitalized on streaming media early on. Most networks jumped on streaming media services in the beginning. Also the networks make a pretty penny allowing services like Netflix and Hulu to play their programs. Also they operate their own pages with sufficient amounts of ad revenue coming from their own streaming media services.
On demand TV services such as Netflik are the future of broadcast media. It is now extremely easy to access very high quality content when and where you want to meaning that local channels are bound to suffer with their restrictive programming schedules. As a consumer I believe that this can only be a good thing increasing the quality of TV produced.