> I do not see how Netflix's primary business is any different than the businesses in the "Hollywood" categorization that also pay to make media and then sell it

Netflix owns distribution and owns+sells VFX and animation services via Eyeline. Most "Netflix orignals" aren't actually produced by Netflix - Netflix just takes a capital stake in a production that was already in the works by an existing production company.

This made Netflix closer to Valve, and allows their IR team to make a valid case that they should be compared against (and thus deserve a valuation) comparable to other tech companies.