It's not like the next Netflix could legally start by just downloading the current Netflix. They'd have to go back to the media owners and negotiate their own contracts for it. At that point, anyone trying to compete with Netflix presumably winds up with the same contractual requirements from the media providers to use some sort of DRM.

From that perspective, the W3C adding web platform support for DRM surely enables more competitors than it stops, right? Now the startup engineering cost is to build or hire one EME-compatible DRM provider, you don't have to build proprietary apps for every platform, you can trust people's browsers to run your DRM as easily as Netflix's and quickly launch to every platform that has a supporting browser.

There's also still room left to compete with a DRM free product, assuming you find a way to negotiate media contracts without it, and figure out how to market that fact both to media companies and to users why that would be an advantage. From a web platform standpoint the work that goes into providing pleasant DRM experiences still floats some of the needs of DRM-free video playback, because browsers are going to engineer one on top of the other to save effort.