Oh, I agree - the Balkanisation of streaming services is utter crap.
It is no different than the fact there were previously different linear channels. What makes you think that where before there were hundreds of players, now there should be just one? Before people in the U.S. paid $50-$150 for content much of which was subsidized by advertising. After skimming the costs of the cable and channel infrastructure, most of that money went to production of that content.
But I can see why it's happening.
It is happening because it is the only way there will be enough money to pay for the content people want to watch.
Netflix made its money by selling convenient access to other broadcasters' content. And if they stayed doing that, and the broadcasters were getting appropriate recompense for their content, everyone's happy.
Netflix was able to charge an artificially low price for access to all those programs because the content producers had already been paid much more from people earlier in the distribution pipeline. With cord cutting, the elimination of commercials, and the decline of movie attendance, those other revenue sources are going away. It would be impossible to sustain that content pipeline with $15 a month when before they were getting 4-10 times that.
But, Netflix are now a competitor - creating their own shows with revenue earned from, in part, other people's content.
You have it exactly backwards. Netflix had no choice but create their own content because as the content producers' other revenue sources started going away, their only option would be to pull content from Netflix, and Netflix new their unreasonably low prices were going to go away.
ITV and Channel 4 live or die on the quality of their shows. Netflix historically hasn't had that worry - people will keep subbing to watch all the other stuff.
Netflix always had that worry, it was just that their was not much competition and their prices were artificially low. As soon as their prices more closely reflected the costs needed to produce this content, they would have had the same competitive pressure as everyone else.
This Balkanisation is inevitable when the producer and the distributor are the same.
I am still trying to understand if you are upset over the number of services or the cost? If the former, you can subscribe though an aggregator like Apple TV Channels and get what seems to be a single provider will all the content. It will cost between $50 and $150 (here in the U.S.). If it is the price that bothers you, your choices are pay enough to get great new content, or have all the producers produce shows that look like
Dr. Who, rather than
Battlestar Galactica.
We knew this when we set up commercial broadcasters in the UK. It's why the IBA handled transmission, whilst the ITV companies handled production. The moment a distributor competes with the producers, can you really blame the producers for looking elsewhere?
Sorry, your model is not the only model and your analysis of why it works the way it does is completely wrong. The U.K.'s choice to make the broadcaster infrastructure publicly owned, just insured that you had less access to TV channels for a long time. Here, where all that infrastructure was privately held, broadcasters owned or were owned by studios and yet happily sold their content to each other. Many of the shows on ABC were produced by 20th Century Fox TV. Shows were made on the Fox lot and aired on the Fox broadcast network but were owned by NBC/Universal.
You think of Netflix as the distributor, in your model, but it is not, nor are NBC or Disney. A more accurate analog to the IBA would be the telecom companies that provide the internet infrastructure.