Why does the BBC *NEED* to compete against Netflix and Amazon?
The BBC needs to compete because whilst it is *currently* not a commercial company and *currently* can survive on the licence fee, these things are in no way certainties. Successive governments have frozen the licence fee and threatened to neuter the Beeb unless they play the game.
There is a growing public opinion (some of it expressed here) that the BBC should be cut free and left to fend for itself without the licence fee/tax. When that day comes, they BBC *will* need to compete against Netflix and Amazon.
All they're doing is preparing for the inevitable. Sounds like a very good plan to me.