Yes, mostly this. If Netflix "fails" it will be because someone bigger buys them out. Which in turn will only really happen, seems to me, if they stagnate on subscribers counts and don't bring down their spending to pay off their loans. Last I read they had about 2 to 1 loans to equity, but since most of that is invested in shows they then promptly cancel after a season, it seems they can bring down their spending quite easily to match a drop in (projected) growth.It isn't a question of Netflix being doomed even with the increased competition, I think it's better framed as 'will Netflix become the Chrome of streaming or the Yahoo?'.
It'll be a while before sub numbers are where they are supposed to be given the covid-19 bump happened, though.
Either way, Netflix is fine, but nowhere near "too big to fail" as they continue to get more competition around the world and continue to increase prices well above said competition. Hulu going worldwide especially should have them a bit worried, at least.