Yeah, this really looks to me like someone still clinking to the long obsolete broadcast model, where you had no back channel to your customers from them to request what they want & to pay for it. And also broadcasts were regionally bound.

So you sold a license to a local broadcasting company to for a time window and number of runs for a show. Not more you can do with no back channel for customers to request individual shows and pay for them. By only granting one license per are you can enforce some scarcity and get your money & hopefully users liked it. Channels could the compete who gets the best time based licenses, who gets the new hot stuff first, etc.

Now here we are with a global network with basically any user being able to request any show and pay for it (or get a subscription for a channel carrying it) and yet the media companies still carry one like one had to win an auction to get one of the broadcast masters, drag in on top of a hill to broadcast it and then return it back to someone else to do the same thing.