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Plenty of people do still watch lots of linear TV as a family. The problem is that the most discerning viewers are switching to on-demand viewing, which has started an inescapable vicious cycle. Dumber audiences lead to dumber programmes, which chases more intelligent people away to on-demand, which leads to dumber audiences and dumber programmes.
Another major factor is multi-screening. Those families sat around the TV are often barely paying attention, but doing something else on their phones or laptops. When people are using the TV as moving wallpaper, broadcasters have a strong incentive to make programmes that are attention-grabbing and easy to follow. We're seeing more telegraphing, repetition, and explanatory voiceover, because the assumption is that a large proportion of viewers will miss a lot of what's happening on screen.
For non-linear content, the expectation is completely different. If you're watching YouTube on your laptop or you've chosen a programme from Netflix, you're much more likely to be actively watching. You're far more likely to pause the programme if you're interrupted, or rewind if you've missed something. You're also more likely to be watching alone than as a family group, so there's less incentive to target the lowest common denominator.