I really hope Netflix proves everyone wrong. HBO and Disney+ may have a huge advantage but neither seems interested in the tech side. Disney+ may be OK now (it's been a while since I checked) but HBO Max seems to be extremely inconsistent when it comes to streaming quality. Even new, popular shows like Euphoria on HBO Max are only 1080p with a bitrate so low that the frequent, dimly lit scenes are a blocky mess. At the same time, AAA movies like Dune stream in nearly Bluray quality. Meanwhile even dumb reality shows on Netflix still stream with suburb quality.

IMO assuming Netflix doubles down on original content which seems to be the assumed direction, they have two strategies. Strategy one is to produce/distribute content that is developed outside the US where production is much cheaper and existing production companies have less of an advantage. Partnering with local, smaller production outfits is probably a good strategy.

Strategy two is to use their tech advantage to lower the cost of content production. I'm quite surprised that we haven't seen Netflix create a Holodeck-esque production method. The Mandalorian (Disney+/Holodeck) and The Witcher Season 1(Netflix) have somewhat similar production costs per episode at ~$15M and ~$10M respectively but The Mandalorian had significantly more and better CG then The Witcher so clearly the Holodeck method has a lot of benefits and cost savings.

That said Squid Game only had a total budget of ~$21M, although a lot lighter on CG, strategy one offers a more cost savings.