they had the wrong idea that original content is their strong point. It's not. It's disney's strong point.
Netflix should've used their dominant position to lobby for new rules to the game - prevent exclusivity of content! They should've lobbied gov't to mandate that studio productions of content be permanently untied to a streaming service, and be available to all players in the streaming space. Just like net neutrality, we might call this content neutrality.
Netflix is at it's core, a tech company that solves technical issues with streaming. They pivoted to content creation, and they aren't very good at it - sure they got a couple of hits, but they cannot possibly compete on this with actual movie studios that own IPs from a century ago to this day.