According to Matt Damon (in one of many interviews) a lot of movies were produced with the second revenue stream (vhs/dvd) being part of the calculations, that is why we now get a lot less variety and alternative movies made, that second revenue stream doesn’t exist any more (I assume streaming pays very little in comparison).

True, but how much of that second stream exists after say 5 years? For most movies it is zero - they aren't pressing the DVD anymore and all stores that once had no longer do (except for second hand stores which don't give money to the studio)