In short, yes. Language/subtitle licensing is a mine field. Often times the small local distributors we deal with don't acquire anything but the local language rights, so it becomes almost impossible to go upstream and get the remaining rights even though we may well have the assets for use in other countries.
We are doing what we can to move the ball forward on this issue industry-wide, but historical rights arrangements are working against us here.
This is also our major issue with MUBI. We love the film selection, but we live in Germany. When we want to watch a French film, its overdubbed in German.
Netflix is also odd about this but usually we can get German subtitles for any film and choose the audio with original language. Ideally we should be able to select any language that there are available subtitles for. Why restrict it by region ?
The producers likely have distribution agreements on a by-country basis. So, for example WB cannot distribute <movie> in Germany because GEMA has the rights. But GEMA didn't buy the rights for the English subtitles. I imagine technically WB could then sell subtitles rights for <movie> in Germany but it would be a pain because maybe those subtitles were done by <subcompany> for licence in America and Oceania... etc.
We are doing what we can to move the ball forward on this issue industry-wide, but historical rights arrangements are working against us here.