Maybe. It depends on a lot of things, and I think the standard channels model won't survive the transition. I'd expect massive fragmentation of interest and message. And that will make Monolithic Media^TM harder to sustain.

So Fox and the other media machines go from having no competition to having plenty. This is bad for them, because instead of making money on ads and eyeballs they start having to spend money to promote the message. At some point this stops being cost effective even for the Murdochs of the world.  

And even if there is more media being produced that doesn't guarantee that people will continue to watch it. Rush and O 'Reilly and the rest aren't popular because they're popular, they're popular because they have a lockdown on the media distribution networks and more progressive voices don't currently get the air time. If that ends, it will turn into a free for all.

Of course this assumes there won't be a corporate lockdown of the internets first, and that corporate interests won't try to lock out the populists - which may yet happen. But it's not a sure thing, and it could easily go either way.