Chris Chibnall:
“I think the biggest thing you can say about all of that is it’s very easy to miss the point ‒ that this is primarily about money.”
“It’s not really about all of the things that everybody is banging on about and moaning about or what or getting emotional about.”
There is certainly failure to understand here, yes. You’ll want to look up the concept of publicly funded media like the BBC, and how they differ from purely commercial ones.
And it’s not sudden, I think in most countries public service media have suffered cutbacks over decades. Again, that is spelled out in the linked article.