Netflix has "optimized" their app to the point where you're cycling between the same 30-40 recommendations on every screen, just grouped a little different. The catalog shrinks every year. And they invest large amounts into producing their own algorithm-based content instead of acquiring more.

Yeah that’s what it will look like if you have this kind of structure. No one is selling a perpetual license for a movie for anything less than top dollar. The proposed plan inevitably tends to this outcome.