Because it costs money to make and market physical media, and the profits make have to pay that off and the remainder has to be shared with retailers. It’s nowhere near as worth it, when they can simply have more profit from controlling the entire pipeline themselves and not sharing profit with anyone else.

We all what a physical media release, but people keep bringing up what would be outliers when the average fan will just keep the subscription. It may not even sell enough physical copes for them to make their money back off of physical media production.

So, the heart of your question is, why don’t they go away from their new business model to potentially split their profits by competing with themselves, sharing their profits, and spending more money before any profit can be seen, instead of the new model where they get all of the profits and people are constantly being exposed to their other content to keep them bringing in profit, and becoming word-of-mouth marketing for the service? There’s no reason for them to go back to higher risk and lower profits.