The big difference is that movie studios actually directly offer higher quality content, simply due to the fact that they make a side business of selling their low quality content to companies like Netflix who are more than happy to purchase a finished film and throw it on the front page for all their subscribers to see even if its crap. The movie studio is able to get a return on a steaming pile of crap film that was probably super cheap to produce and avoids the reputation tarnish, netflix is able to advertise a wider catalog and hey, sometimes these junk films really do pop off for netflix like what happened with Kissing Booth.