This is true, but it fails to take into account back catalog the legacy media companies such as Paramount, Disney, NBC Comcast, and to some extent even HBO have

This is true, but it fails to take into account back catalog the legacy media companies such as Paramount, Disney, NBC Comcast, and to some extent even HBO have to fall back on. They gain subscribers simply to watch the content they made 20+ years ago, and then on top of that, have in many cases just been running sequel and spinoff series on things they already know work. Sure, not every spinoff series works, but it's sort of like they're throwing darts at a known dartboard in a well lit room; Netflix is throwing darts in the general vicinity of where it believes a dartboard to be based on the sounds its heard from getting lucky in the past in a pitch black room. The consequence is that Netflix pays a lot more money finding its hits than its competitors do. This isn't insurmountable, and Netflix has shown itself to be full of innovative means of handling this reality. But while the bulk of the last 10 years was just gathering subscribers to pay for other peoples' content (remember, until recently, The Office, Friends, Star Trek, and Disney movies were ALL on Netflix), the next 10 will require them to do more in the way of finding original content that works, and acquiring things from smaller/foreign studios (a la Squid Game). They've got practice, but they've lost their money printer.