Let me take a swing at this (all I say is my musings alone, not based on any real knowledge of what TC's reasoning is):
I can't imagine why a business would voluntarily surrender profits so that they can "stay small." In these tough times, there are many businesses that wish they had GREATER profits, or, in fact, any profits at all. IMO, "tak(ing) loss in profit" is the best way to go out of business.
This assumes that TC is the main way that The TiB & Kathy make their living. It might be that they both have 'real' jobs and TC is a hobby that has grown into a business. They might have no desire to put all their job eggs into the risky marketplace that is fetish videos, and can't take more time from their 'real' work lives (and personal relaxation time also) for the tickling business. So they have decided to keep things at a managable level by keeping the number of active videos small. Think of TC as a hobby that pays for itself in this mode. They get to have tickle fun, meet some great models and bondage folk, and practice video editing and composition. Not a bad deal.
There is also a case to be made about the costs of having copies of all videos ready for ship (space mostly) and such. Degrigation of Master tapes might play a part also.
I'm a member of the keep it all in print school myself, but to each business I'll say, do it your way. Tis the whole reason for being one's own boss 🙂
Myriads