The problem is that there is a fixed amount of time in a day and people's focus is a zero sum game. If more people are playing fortnite, less people are watching netflix. If more people are watching youtube, less people are watching mainstream tv.
There are only X amount of watch time for this world. The battle between all media companies is over that share. It's the cause of tension between traditional media and social media and why traditional media has been so forcefully demanding a privileged place within social media. There is only a finite number of hours for people's attention.
I think that optimizing for time watched is genius for Netflix for exactly the reason stated above. Of course it helps drive retention, but the ultimate benefit is netflix-izing our culture so that a subscription is just necessary for our social life.
Growth is fueled by assimilating otherwise normal people into the Netflix zombie botnet.