Comment by rincebrain

The tl;dr is that we've demanded things with such enormous production costs that were basically almost entirely subsidized on a socialized model, where the big appeal of the big ones subsidized the costs of the less successful ones, in a way that would make them not reliably financially viable in isolation.

But the content that is so specific it only appeals to 1-10% of people is both the most memorable and also often the content that is basically guaranteed to not hit for 90% of people. So your math on who's going to pay to consume it changes drastically when the ceiling is so much lower, especially when the effective price required is so much higher that it's going to drive even more people away.

So it's a much larger risk pool to hope you'll make your money back with the error bars so much narrower, and businesses being businesses, they go for the bland thing with a lower risk pool 99% of the time, and then wonder why their returns keep shrinking.