If they took a (less horrifying) Black Mirror approach where it was stories in the same universe that could be interesting, but I don't think it would play. There's a lot of story fruit still in LOTR universe that hasn't been plucked yet, so I think that they could do something really good that was episodic as well, but I suspect it will end up closer to "Legend of the Seeker" than something with a good, lasting story.