How does streaming negotiations(for shows/movies) even work?

How does streaming negotiations(for shows/movies) even work? I got so many questions, how does a company even afford to license a large variety of movies(like netflix of amazon) for a period of time, since major cable channels back in the day could only afford a tenth of the movies on streaming platforms now. Sometimes I see some movies being streamed on two platforms, doesn't that defeat the point?
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