I'm pretty sure that Netflix understands this, by the way— they know that deep-pocketed competitors like Amazon are going to eat their lunch if they try to do mass-appeal prestige shows starring A-list celebs, so they only do a few of those (enough to basically fill the homepage), while leaning hard into extremely niche content. Like, have you seen how many weird cooking shows there are on there? Or Hallmark Christmas movies? This is stuff that's harder to find elsewhere, and there are dedicated audiences on Netflix who are mostly or exclusively consuming it. If Netflix's internal accounting worked like how Spotify pays royalties, those shows would be instantly canceled in favour of new primetime-style sitcoms.
But they aren't, and I think it's because there are pools of their subscribers who will cancel the service if there isn't a steady stream of the specific content they're interested in. Thus, their subscriber $$$ go directly to funding that content, rather than into a general pot that's broken up by raw viewership numbers.