Not even close to the truth. What you are describing is a perfect functioning market, with producers just interested in serving the needs of the customers. In reality, things are way more complex:
- producers try to reduce costs
- producers ignore customer demands as long as they are able to do it. In particular when the customer has no option because competitors are following the same cost-saving approach.
- customers give up and start watching second-best options, and get used to them (tragedy of the commons)
- there are synergy effects which allow producers to get away with sub optimal options: I will use my Amazon Prime account to watch videos, even if I am not entirely happy with the offer, because I am already paying for Prime for delivery.
- the world is complicated, and consumers have little time and power, while producers can spend time writing 30 pages contracts. The only way to balance power here is to associate, but citizens are quite bad at it. The EU is an association, and I am happy that they are taking into account the consumer's interests.
I wonder when will this fallacy of "the market works to fulfill the interests of the customers" die out ...