I have to say that watching the olympics has convinced me that chess would do just as well on tv as all the other nonmajor sports have. After all, most people want to watch the best play no matter how little they understand about what is going on. Nothing more than olympics has convinced me of this as cluless people watch time and time again boring sports just to see the chance their country might be the best. 

However, you'd really need good announcers to 'add' action to the event and explain to the ignorant just exactly what is going on enough so they can say 'oh my country isn't out of it yet!!' Further, you would need multiple formats... including a team tournament, individual and maybe even thematic (opening or perhaps fischer random).

Personally as an avid chess player, I would have no interest at all in watching chess on TV. The internet is a fantastic medium for chess.

In 1986 or 1987, I attended a made-for-TV match between Kasparov and Short at the London Hippodrome.  Players had 25 minutes per game, and I remember seeing them on Channel 4 not long after.  I don't know if they were successful, but it was neat to see Kasparov up close and Short.  Kasparov won the match 4-2, although he had predicted a 6-0 scoreline at the beginning (I also seem to remember him coming out to be interviewed by Ray Keene, and almost sliding right off the stage.  Both took the time to sign programmes (which I still have somewhere) along with Jon Speelman and others...