The problem is the business model/royalty scheme. The music industry was enjoying the drug of selling a CD for $13 and before that the LP. Now you can subscribe to all you can eat for less than the price of one CD! For that reason, both the video and music content owners hate, hate, hate subscription services. As such, they do everything they can to boost their royalties and if that means the music distributor goes out of business, so be it.
The same is also true of video. The difference there is that old video/movie has little video. So Netflix was able to license a bunch of that for a song. That is not the case with music. Beatles music is old but highly desirable. New movies are expensive though and studios want to sell it at retail instead of Netflix showing it under subscription. So what does Netflix do? Create its own content! Much like HBO did before that. And broadcast TV did the same with mini-series and such.
Technology has moves so much faster than business models for distributing music and video.