It sort of happened, just 20 years later, and the details are different. The web's user experience proved to be superior to that of physical media you had to switch out, but Internet speeds had to get fast enough (and the usage billed in a lenient way) for rich multimedia to be delivered smoothly.

In the meantime, the TV screen lost relevance to first desktop computers, then laptop computers, then smartphones. Microsoft was the only large company who consistently hammered on this idea (Encarta, DHTML, MSN, HD-DVD's HDi, Xbox 360's dashboard), and with a vested interest in the health of the desktop ecosystem, but they couldn't execute this first convergence -- and ironically, neither the second convergence of desktops and smartphones. Apple and Google leapfrogged them in critical ways, and this interactive consumption revolution took place on the latter two's portable smartphones instead.