What you are getting at is that discovery platforms do not give attention for free anymore and you are expected to pay for it. In the radio era this was called payola, it was illegal, and people did it anyway because radio was the gatekeeper to financial success in the medium. Payola isn't even restricted to streaming services anymore. For example, Amazon expects you to buy advertising on their own platform if you publish a Kindle book.
The fact that home video would provide a second boost of cash for a production was important, and I do mourn the slow death of physical media. But it is not directly connected to the discoverability problem we have. Even when people were buying CDs and DVDs, you still had to contend with a distribution system that largely had already decided what you could and could not buy. Midlisters still made shit money, because publishers do not actually care about their midlist and they don't want to sell you originality. They want to sell you IP they already own.