Netflix does the same thing: they buy a property, fail to create something good out of it and then raise prices to cover their losses citing operating expenses. The few winners don't make up for the endless pile of losers. Disney is no different. The bought whole brands and essentially drove them into the ground. Sure, you can keep shooting at your own feet, but eventually...
Amazon's base plan is technically "free" aka included, so they can't really charge you less for it. They did that to themselves: they have to add a higher tier because they want to say they aren't charging you for the service.
IMO LotR wasn't a flop, but they certainly spent too much for what they produced. Wheel of Time, not worth time lol.