netflix didn't really ruin it themselves (at least, not completely) - the owner of the licensed content did, by wanting a bigger cut of the pie. Disney, for example, didn't feel they're paid enough, and so stopped licensing the content out to netflix and instead created a competing service.
I think this is a regulatory issue, because each piece of content is an effective island of monopoly. The state needs to make some changes to how content is licensed to prevent monopoly. An example policy would be to force content production studios from exclusive licensing - only broad and available licensing (so any streaming service can pay a known price and obtain the content).
Something similar exists with cinemas and movie producers (of course not quite the same). Why couldn't the same or similar be for streaming?