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Blatantly wrong. Netflix started producing their own shows because studios suddenly realized they could make more money charging for their own back catalog rather than leasing it to Netflix.
Allowing production companies to be distribution companies / streamers is inherently problematic given that copyright is based around monopolies.
Netflix correctly knew they were first to market with a streaming service but every production company would quickly pivot to a streaming service, leaving Netflix with no content. So they preemptively started making their own content to try to keep their market share. Sadly their production bets often didn’t pay off.
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