Whilst I agree with your concerns in regards to licensing...
I am not sure what you would like as a answer? I can provide you with a scenario that EM1 could pursue, but your guess is as good as mine.
EM1 - Partner, with the big names. (ea, Bethesda, blizzard, etc) Have a small catalogue of popular games and provide a basic subscription.
They then have Tiered subscriptions or catalogue of publishers that the consumer subscribes. (emerge & said publisher determin revenue split) for rights to play with that specific publisher. E.g.. $20.00 a month locked for 6months to stream all of the publishers games on the platform or increase the price for a month by month subscription.
Disclaimer - This is a hypothetical scenario, to address a comment.
DYOR.
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