Netflix has about 36,000 hours of content. On Youtube that much content is uploaded every 1 hour and 20 minutes! Or to put it another way, Netflix re-encodes every month what YouTube encodes in just over an hour.
I don't know the reliability of these sources, but according to one article[1], as of 1 year ago, US Netflix had ~5.8K titles, totaling 36K hours of content. Another more recent source[2] claims that worldwide, Netflix has ~15K titles, so assuming the same distribution of runtimes, it would be closer to 93K hours of content. So, while you're correct, it's still the same order of magnitude.
Back-of-the-envelope calculation: a slacker suffering from insomnia watching 5 streams of Netflix at once × 20 hours/day × 365 days non-stop would otherwise watch the whole catalog in less than a year.
If we unpack your calculation to slightly more typical human behaviour: Watching 1 stream × 10 hours/day × 365 days non-stop, one person would need 10 years to watch the whole catalog.
FWIW, that conversation about Netflix re-encoding their catalog monthly was from about seven years ago! Their process has surely changed since then. :)
Also, IIUC, they re-encoded about once a month, but the re-encoding didn't necessarily take one month of compute time.
