I wonder if this was the plan all along, or if this was just inevitable. I have a feeling we've seen this pattern before...
Rely on originals only. For whatever reason, not satisfied to stay that small.
Raise price, more originals, license some content.
License more content, so many originals now some don't pay off, another price increase.
Then comes the "ad-supported" tier at a lower price. More licensed content, fewer hit originals.
Another price increase. Ad-supported now costs what the "old" ad-free plan did. Quality starts to suffer.
That last stage is where everyone else seems to be at or near now.
I really wish we could get it together in this country to separate content from content viewers. If we could just buy a license to content from content owners, and then view it in a system designed for the viewers rather than the content owners, the world would be a better place (as far as TV viewing is concerned.)
But the current system incentivizes content owners to ratchet their content further and further down. And the user experience suffers for it.