I think most companies know people will pay for better service but if tens of millions of people are already paying for crappy service and there's little competition then why spend hundreds of millions on improving service if it wont give THAT significant of an increase ? because the majority of people who care at all are already use to paying for crappy service and as long as no significantly better competition in the same or lower price range comes along then you have nothing to worry about.
Cable companies aren't in the hardware business, they outsource that. My cable box doesn't say "Time Warner Cable", it says Cisco. Even comcast boxes that say Comcast are usually manufactured by Motorola or someone else. Same thing with Modems you get from them.
Thing is Apple doesn't want to just make boxes and sell them to companies, they want to control the service too. They're trying to have a much more limited line-up for cheaper but like I said the content providers and cable companies will do whatever they can to NOT let them make this as good as it can be. Why ? because there's potentially BILLIONS at stake for them to lose. It's very hard to see Apple's business model making the same type of profitable return for content providers that cable currently does. Which is exactly why this is taking so long. The content providers see very little good in something that will potentially start replacing cable service as a whole on a much more massive scale than anything that has come thus far. They've seen how Apple has shaken up other industries, they do NOT want that happening to them.
The cable companies will also fight back against their endangerment. If Apple service ever really blows up I wouldn't be surprised to see more companies adopt data caps, higher prices, and other practices to discourage people from giving up their cable.
At the same time I really dont know if my faith is still in Apple to deliver a GREAT TV service, at least not for a few years after launch. I mean they couldn't even deliver a solid STREAMING service which is much more in their circle of competence than this. Apple Music was/is a huge let down for something that should've been easy for them to master which questions how they're going to deliver something revolutionary as this. I really hope they prove me wrong.