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You're forgetting one pretty major medium for music videos these days. Think about what you are looking at this message on. A lot of people watch music videos on the Internet. It's at your fingertips. I'm sure that's why MTV & VH1 don't show videos during the day. They know you can just go find your favorite video on the Internet. It's still a very useful marketing tool.
And they do play videos in the morning/late at night. And VH1 still does a weekly Top 20 countdown show. So they are still relevant. It's just changed. The way you see them has changed (like everything else).
And think about it. Didn't Daughtry just debut his video on AOL a few days ago? The Internet rules the world these days. That would have been unheard of a few years ago. But it probably makes the most sense nowadays.