I mean... that IS how restaurants work. If people don't order the fish of the day then they buy fewer and fewer fishes until it is no longer a thing. Even the speed people eat DOES matter since restaraunts tend to be designed around each customer spending a certain amount of time dining. Too short and they will never order a dessert. Too long and they are costing you money while they nurse that coffee.
And similar happens with even buying blu-rays. If nobody bought Master and Commander in 4k then you can be sure that experiment would be over. Instead? That thing sold like toiler paper during COVID and we'll likely see more "prestige" releases with a huge dose of FOMO.
As for up fronts versus long tails? Guess what is motivating all those revivals "nobody asked for"?
Don't get me wrong. I vastly prefer to rip blu rays to my NAS and watch via plex. But the idea that you are somehow no longer part of the marketing cycle is just... wrong.