I think it was inevitable that they would have to make this change. It says temporary in light of COVID-19 pandemic, but I could see it becoming permanent.
I don't think this will affect the big hitters such as NetFlix all that much, as they can already afford to buy/rent their own movie theatres, so they can show films theatrically in a limited fashion to get around the existing 'Oscar' screening rules. It may have a bigger affect on independent film makers, who couldn't afford such luxury.
The biggest change post COVID-19 will be the every smaller window between theatrical and streaming releases. Ultimately, cinema-chains are going to find things extremely tough. It looks like AMC in the US may be forced into bankruptcy.