The active ingredient is bromoform, which might even be cheaper to dose than the raw algae.
Bromoform is incredibly toxic, and possibly even a carcinogen. But if you feed them seaweed then it's suddenly all natural. /s That might be why. But in seriousness, I'm not so OK with feeding animals bromoform or seaweed for that matter if that's a common component.
I wonder if the reason the industry is pushing red seaweed supplementation rather than direct bromoform supplementation is that the latter might require greater evidence of safety (being essentially a medication rather than a foodstuff) before being allowed?