they may act sooner as their core customers won't cancel streaming out of spite like they did in '11.
Tom, IIRC, the mass exodus of subscribers when Netflix threatened to drop DVD mail was mostly analysts making predictions and then press reports based on thiose predictions. In reality the level of subscribers lost hardly amounted to more than just normal loss gain for any month. Later there were much greater losses when Netflix raised it's prices, but even that loss was short lived. The real problem with Netflix is the stock has run up much faster than the real value of the company. BUT, the product offered is in a league all it's own. They are giving the consumer a value that is not equaled, except Amazon comes a distant
second. For me it has been a great money maker, trading it with the wide swings of over value - under value.
As for the service of streaming, I find the quality best of breed and best of all, if I get caught with nothing of interest on TV, my library, or Redbox, Netflix always has something I have never seen before that is presented in excellent quality worthy of my home theater and entertains.
The graph you posted leaves lots to question, missing info. Usually I don't like basing my choices on these, rather the actual numbers. On the chart I con't determine if the lines represented gross or net profit. Based on the Netflix CFO statements, the DVD business has a growing cost that far exceeds the streaming per title. That is why in the recent quarterly report they stated that to keep the DVD business in the Black, price increases may become significant and this may have a serious affect on the number of subscriber losses further exacerbating the decline of that revenue stream.