Netflix biggest problem, was when it divided its streaming and rental services. Customers were expecting to get more, because they were paying for more. Streaming previously cost $2, now it costs $8. With that 8$ cost, it made Netflix a less cost effective streaming source, and with no new content its previous streaming users were bored with what Netflix had to offer. With competing services like Hulu having better TV content and being free, Amazon prime having equal content and costing $80/year with many other perks, and now blockbuster directly competing with Netflix in dvd by mail and streaming for the same prices, its no wonder they lost tons of subscribers.