Is that not part of the problem though. Netflix releases a lot of it's own guff and frankly would have been better spending the 8 figures on licensing something that a big studio has created. I get that's trickier now that a lot of studios are now running their own streaming platforms, so that boat has mostly sailed for Netflix, but it means they're left with trying to produce their own content.
Netflix have to make their own content because the big media companies all have their own streaming services now. Thats why they pivoted to content creation, they had no choice, and in their case quantity is more important than quality. Just because it's crap doesn't mean people wont either watch it or perceive the regular additions as value even if they dont watch them.
Look at Sky, its screwed - its losing licensed content all over the place but doesn't have the fund to create much of its own content - switching from dishes to streaming is as much a desperate cost saving than an advancement to them.