A more charitable view of the situation would be a requirement that any content which has taken public funding should always be able to be "reasonably accessed."
This allows private businesses to seek out solutions that are in their best interest, while also offering some protections to consumers. I don't see it as any different from the way we regulate other public utilities, like not allowing power companies to shut off service during the winter.
Note that I specifically used ambiguous language so that a wide range of uses for the content are possible. I don't necessarily have a problem with Sesame Street being behind a paywall, provided that the service isn't priced in an absurd manner.