> Content saturation works out very poorly for IP holders.

That really depends on how the culture of media consumption changes. It's very different than the world of movie theaters and TV. Most people are using social media to consume the majority of their content. This at least helps constantly inject their characters into the mainstream culture, when they can no longer dominate TV/cinema and streaming platforms already saturate their characters with high volume.

The biggest risk IMO is if the short content being produced is more entertaining than what they officially produce or it turns into a mini-culture they don't have influence over, and they struggle to profit off the old stuff.

They will essentially be competing with their own IP.