At this point trying to compete with Neflix, Disney, Hulu, etc, with limited shows and no catalog it is a waste of money. They should have bought Netflix or similar if they wanted to get into the streaming...
They don't really have to compete with other streaming services. Everyone offers something different. This isn't an either or thing. You subscribe and watch what you want, cancel when you want and move on.
If I wasn't getting Netflix for free I would cancel right now as they don't have anything that interests me. Though I'd come back for the Witcher and some new seasons of others(binge and leave)
If prime video wasn't part of prime shipping I would have cancelled that as I've watched all they have that I want to. Though I'd come back for the expanse. And LoTR and wheel of time when those launch(and some others, binge and leave).
If it wasn't for the mandalorian I wouldn't be subscribed to disney+ as they don't have anything I haven't seen or don't already own. Though I'd come back for their future marvel series.
If I wasn't getting ATV+ for free would I subscribe to it? Absolutely! I'm enjoying everything they have right now. And they have a ton of stuff coming that looks to be quality.
You see, they don't have to have a ton of content. There's only so many hours in the day. I couldn't watch more if they had it. I only need just enough.
Besides, ATV+ isn't meant to be a stand alone sustainable service. It brings people to apple. It adds value to their other products. By itself it doesn't have to turn a profit if it can generate sales in other areas for them.
If other companies exist in a space should no other companies try and enter that space? To say no is just silly. New companies pop up in an existing space all the time! Some fail, some have some success and others can come in and complete change the market.