Old media tried to kill them by cutting them off from content. Instead of letting it happen, they proceeded to replace old media as a source of content.
Those aren't the the part of old media that people are dissatisfied with. Who decides what gets produced? How do advertisers affect the decisions? Isn't that what is changing? Also, aren't the decisions at that level what viewers tend to be dissatisfied with?
But this isn't Netflix producing high quality content while the studios lose out. It's Netflix paying the studios for quality content.
Edit, source: http://www.businessinsider.com/blockbuster-ceo-passed-up-cha...