[acdha]

> Netflix is a great example. It went from having a large library because the producers were its friends, to entering production itself, and alienating its former partners.

This is the opposite of what happened: they had a large library because they were able to cut some deals in the early 2000s when streaming was a niche due to bandwidth and hardware limitations and most of their business was DVDs in the mail. That became popular and the large content owners decided that they wanted a greater cut and especially to avoid what had recently happened in music where iTunes had such a large share of the market that Apple was able to negotiate less consumer-hostile terms with the music industry.

Developing their own content is how Netflix is trying to even that up - they profit directly and it makes it harder for one of the large rights-holders to setup a competitor and lure most of their customers over.