I believe the studios are desperate and scared, and they want to make sure that the writers are too.
They will run out of money.
They will stop seeing new subscribers on their streaming platforms. They've been subsidizing the cost of developing those streaming platforms in order to capture an audience, but they don't get advertising revenue from their streaming platforms, and there's a limit to how many platforms anyone will subscribe to to begin with.
They have built an unsustainable business model on the back of an industry that is leaving them behind.
There's also the Physical Media aspect. Especially when they are relying on their backlog to make money, physical media comes in to play.
Physical media sales, and especially second hand physical media sales, don't come with recurring revenue (or, in the case of a bargain bin loss leader or a second hand purchase ANY revenue.)
Physical media sales are up something like 30% in the last 3 years, and that's just counting the stuff that actually gets counted. I sell used DVDs, bluray discs, and VHS tapes, and so do thousands of other people who's sales aren't being counted.
The physical media thing cuts in to recurring revenue across the board, but it's especially powerful with pre-HD TV releases because the 20 year old DVD you found for a dollar at the local thrift store is likely to be the best version of that original source material that'll ever be released.