It goes back to Data's statement that TV pretty much became 'extinct' around or a little after 2040.
TV as it was in 1987 is already going extinct nowadays. That's more what Data meant, not "TV is entirely gone". It's another example of Trek unintentionally predicting the future.
I don't know that I agree. Sure, there's a bagillion more channels than there were in 1987. And we have better and more flexible methods of recording and playing back programs than the VCR's of 1987. But, fundamentally, TV is still the same basic medium as it was, and it's still the dominant home entertainment medium by a long shot.
Yes, there's Netflix and YouTube and all sorts of online viewing options. But, truth be told, the vast majority of people are still not using those as their primary method of viewing TV programs. The vast majority of TV viewing is still taking place in people's living rooms in front of a (basically) traditional TV.