Regardless of what name you give it, anecdotally, pretty much everyone I know who does not subscribe to a BDU subscribes to Netflix and otherwise pirates what they want to watch. They won't even consider other Internet-based options that exist such as CraveTV. $10 - $15 is the most they're willing to spend on TV (which primarily goes to Netflix) and they'll pirate anything that doesn't provide them. Even if all existing content was offered by an Internet-based service tomorrow, it would be an uphill battle to bring those people back from piracy, because the price they're now used to ($0 in many cases) is a hard price to beat.
Look at the music industry -- streaming services are now the norm, because for the price of a single album per month, you can listen to basically whatever you want, regardless of publisher. That's essentially Netflix's model, except you don't get everything there, and TV/movie content is far more expensive to produce, so I don't believe that model would be sustainable there with the current amount of content we have. That's the model people want though, and they don't seem willing to tolerate anything else. Some US content providers have already begun taking small steps in that direction to attempt to stop the bleeding, but as far as I know, the only one that has seen any substantial amount of success with that is HBO, and even then, people tend to only subscribe while the show they want is in season.
The other factor though is that there's so many entertainment options these days, many of which legitimately cost little or nothing, that there may be too much competition and people only watch a handful of shows at best. I see a consolidation of content offerings coming in the future, because the current model will become unsustainable. Netflix can only afford all the shows it does because it has a massive global revenue base. That will likely also be the direction we're going with everything, in that licensing content by territory disappears.
As for the CRTC, they know it would be impossible to attempt to regulate Internet content in a global marketplace, which is why they haven't tried. Even the US hasn't attempted to do that. They also know that traditional BDU days are numbered, and their recent regulations are a lot more hands off, but those BDUs still have a privileged position in the marketplace, and thus still warrant some regulation while they still exist.