Bonus points if you can also explain what the deal is with different movies and shows being cycled between the different services!
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Content attracts subscribers.
Original content will attract subscribers to that particular service and also has the benefit of not having ongoing licensing fees.
3rd party content will have licensing fees – but also has diminishing returns. For a spend of $x per year they might be able to hold onto a fixed library of 3rd party content but their customers will get tired of stale content, instead they negotiate fixed term contracts and cycle through content – this allows for a regular stream of new content. It’s more bang for their buck and more value for the subscribers.
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