Frankly I think customers have been totally overreacting. Even at the higher price, they offered a service that nobody else did and will save you more money and provide more convenience than running to Red Box for movie night.
With that said, they have been taking a beating from stockholders. Netflix has very plainly come out and said that they want to drop DVD service and go fully streaming, which is where the future is headed. I would not be surprised if their intention is to sell off the DVD division at a later date and their streaming division will already be self-contained, making less hassle later when the sale comes about.
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