I don't agree with that argument. I am constantly finding new movies and TV shows to watch that I genuinely enjoy, but I still (reasonably often, even) watch or re-watch older content that I end up enjoying just as much.

Flooding the market with AI-generated content -- even if that content is good -- is not going to stop me from watching (or re-watching) older human-created productions.

I don't think I'm all that unique. I don't watch broadcast/cable television anymore, but I know people (especially those less technologically sophisticated, of any ages) who still flip through the on-screen TV guide, and are happy to tune in to watch a 1980s movie on some random channel, ads and all.