Changing the distribution channel didn't change the economics. And entertainment economics don't work for public companies.
There is only so much time in which to consume entertainment, so you have a (large, but real) ceiling for direct customers. Ads are a way to supplement this, at the cost of irritating direct customers, so that's minimaxible but has a ceiling, too.
Public markets hate ceilings. So public media companies eat each other.
This used to mostly be spectacle, you can only get a quarter or two out of goosing the stock with layoffs, so the brunchlord in chief knew to bugger off victorious to the next venture he could shit up.
But now there are so few left at the top that they can offer a different sort of advertising - what we used to call propaganda.
You can make a lot of money gaslighting a nation.