Paramount etc can make stuff, but they don't get the global media landscape in a way netflix and disney do, and I think similar can be said about other well established media companies.
Some shows worked better with entire season released at once, some didn’t. Streaming services will probably dabble with both.
I'm sure it's an important channel to reach certain demographics (gen z? I'm not sure who exactly) but most people aren't choosing a streaming service based on youtube reaction videos.
Content isn't the problem, they just ran out of people willing to sub, they were always going to reach that limit at some point and when they did their tech unicorn valuations would reset back to something more realistic.
They are selling attention addiction like Facebook without caring about quality recently. Ex: Korean copycat shows and "documentaries", just because both categories tend to rate higher on imdb. Seems like a decision a PM will make, based on metrics to improve profit, not quality - i.e. give users what they want, even if it is bad for them (or the business) in the long term.
PS: Disney is doing the same, but with brands instead.
Disney gets the new landscape. They give early access to tons of youtubers and you can't move on yourtube without bumping into the latest breakdowns, rections etc about an episode of moon knight or a teaser trailer, shows are released globally within hours, and they have a massive back catalogue.
Amazon bought MGM, bringing in things like Stargate and Bond, but it's dabbling, if their video service stops, it doesn't really cause the company to fail. Apple doesn't seem to know where it wants to go, it's not really in the game, but it's not their core competency either.
Netflix had an opportunity to secure their catalogues a couple of years ago, but just threw money at trying to create original content but not really knowing how (and certainly not knowing how to do it efficently)