Content saturation works out very poorly for IP holders. The value of your brand reduces dramatically , and you reduce excitement for new releases.
This is the company that had to walk back its plans to saturate streaming and theaters with their content because they ruined the hype for Star Wars and Marvel content. Two of the most beloved franchises!
This is just going to make that worse when ever social media feed will be blanketed by even more slop.
Unless the gambit is that they expect merch sales to go up, or they have a way to guarantee a cut of any used content. I’m sure there are some IP infringement lawyers who have basically secured a life time of work with this announcement.