I sort of doubt cable or satellite had much impact on KSCI changing. Despite people thinking that cable tv is a ripoff because the providers throw tons of non-English channels into the basic packages, foreign language stuff is usually in a optional tier that costs roughly what is being charged for premium channels. While there are probably some people who subscribe just because the Asian content is better than KSCI's, I do not believe the numbers are that high.
These OTA channel owners probably do not care much about diversity. It is not like they are program directors trying to put out the most entertaining programming or are trying to satisfy a need for the community. All they care about how much they are getting paid to lease out their channels.
That being said, there are so many OTA sub-channels that I wonder if anybody makes money from them since we are in an era of instant gratification via on-demand online content. Between Korean, Chinese, and Vietnamese, there must be 20-25 channels. The population of those ethnicities in SoCal does not seem to be large enough to support every one of those sub-channels.