I think the problem is that, even if they are making a profit, it’ll never be enough. They’ll add more ads to your ad tier, or add ads to my paid tier. You are captive because of media copyright and licensing, cattle to be milked for returns. And so, one must vote with their dollars and local storage if the UX degrades in pursuit of financial demands leading to enshittification.
Edit: I’m trying to be reasonable, you know? Services cost money, this is fair; have to pay COGS for everyone involved to get the bits to my devices. But the relationship is always in tension. I can go without, I can source the content elsewhere, etc. But mess it (the experience, broadly speaking) up and I will bail, you are competing with free. Disney owns Hulu and they’re are doing just fine financially (~$174B market cap, ~$90B/year in revenue). Don't mess it up, I want to give you money if I am getting value.
https://en.wikipedia.org/wiki/Enshittification