Is Coursera really creating content or are they being subsidize via either already created content or by the universities that support the professors making the content?

Tailoring the class into 2-5 minute videos and designing interactive questions and programming tasks should count as creation of new content in my opinion.

Besides, when a professor writes a book, based on a lecture they are paid to give, the university does not get a share from the royalties either, as far as I know.