The services definitely know about this and to a large extent they build it into their model. Every subscription service has a churn model being accounted for.
The services also know that the only thing they can do about this is release enough new content to keep users engaged, or bundle the subscription with other ones.
Hear me out: what if we had like...an hour block where EVERYONE streamed one of the same 15-20 shows at the same time?
Obviously, we'd also need to have a few random catch-up blocks for older shows, maybe in the mid-afternoon. Perhaps we could even do it over the air wirelessly, with no ISPs involved.
Of all the competitors to Netflix, Pluto tv (owned by Paramount) is the most interesting.
Precisely because they built, and continue to optimize, their product around profit:user.
If they can get favorable licensing deals by broadcasting as linear programming... they do it.
If they can get good deals around on demand... they do it.
The end result seems to be that they have many more options to minimizing cost of licensing content, and therefore maximizing the amount of content they can offer a user, versus a pure-play on demand provider.
If Netflix added linear programming "channels", I'd buy their stock tomorrow.
The services also know that the only thing they can do about this is release enough new content to keep users engaged, or bundle the subscription with other ones.