Netflix has about 36,000 hours of content. On Youtube that much content is uploaded every 1 hour and 20 minutes! Or to put it another way, Netflix re-encodes every month what YouTube encodes in just over an hour.
Convinced?
If we unpack your calculation to slightly more typical human behaviour: Watching 1 stream × 10 hours/day × 365 days non-stop, one person would need 10 years to watch the whole catalog.
Doesn't seem unreasonable to me.
sources:
[1] https://www.whats-on-netflix.com/news/how-long-would-it-take...
[2] https://www.comparitech.com/blog/vpn-privacy/netflix-statist...
Also, IIUC, they re-encoded about once a month, but the re-encoding didn't necessarily take one month of compute time.