I'd say a big problem is ads and poor-quality programming. Competitors like Netflix etc have moved with the times; traditional TV hasn't.
I almost never watch traditional TV anymore. I don't see the point of it when I can watch Netflix whenever I want, it saves my place for me in what I'm watching, and there are no ads. I literally don't have time to sit down and watch TV at a specific time when a specific show is on, nor do I have the time to bother setting up recordings, even if it's automatic after the first time. My point is, I'm busy, TV should be available when I want it, I should not have to arrange my schedule around what's on.