Speaking at the Morgan Stanley TMT conference in Barcelona, Crozier said that the emergence of services such as Google TV and Apple TV was already causing problems for traditional digital TV operators in the US.
In a process often known as "cord cutting", customers cancel their pay-TV subscriptions in favour of consuming entertainment content from other sources. It is a major worry for American cable operators as it threatens their core subscription businesses.
In the UK, YouView - the BBC, ITV, Channel 4, Channel 5, TalkTalk, BT and Arqiva joint venture - will launch next year to bring video on-demand and internet services to the subscription-free Freeview and Freesat platforms.
Crozier believes that the emergence of such connected services is the sign of a second phase of the digital switchover, as TV and the internet start to come together.
"Through YouView and accessing the video on-demand and archive and everything else, it moves it on to an a la carte menu, which is where people can have the majority of their television free and then pay for the things they want," Crozier said.
"For pay platforms that's quite difficult - the model there is to get people to pay for things you don't really want to get the things you do."
To cut costs during the recession, ITV reduced its content investments in favour of buying in mass audience programming such as The X Factor to attract advertisers.
However, Crozier's five year transformation plan for ITV focuses on investing in content and services to drive up revenues and reduce the broadcaster's dependency on advertising revenues.
"Clearly we're fairly cash-rich at the moment and obviously we need to make sure that our balance sheet is as effective as possible and that's something we're starting to consider now," he said.
"But equally we have some investments we need to make, and we've been upfront about that a few months ago, and we need to make sure we take steps while things are good."
Yesterday, ITV hired Hat Trick co-founder Denise O'Donoghue to lead a "creative renewal" at ITV Studios with former Channel 4 director of television Kevin Lygo.
O'Donoghue and Lygo will be tasked with generating hit programme formats at ITV's production arm for its own channels and for sale to international broadcasters.
Crozier also said that ITV's website has "suffered from the lack of investment" over the years, after recent figures indicated that the site gained 15.6m average monthly video views over the 12 months to November 6, down 6% year-on-year.
ITV is currently working on an overhaul of its web services, including a new micropayments system, as part of plans to sell its content on a wide range of platforms.