They had first mover advantage when it came to streaming video on-demand. They did see the writing on the wall that they needed their own catalog, but I think they hyperoptimized for quantity over quality. Netflix has a deep bench of originals, but so few are actually really good. Compare and contrast that with a service like Apple TV+. They have a smaller catalog, but their content, to me, is typically higher quality (Ted Lasso is a standout, For All Mankind is spectacular, etc).

They lost the plot when they decided they couldn't just be a distributor but also a creator. They went too hard too fast and they don't have compelling content.