they're doing nothing wrong with the streaming service and mo money = mo content licenses = mo movies. that's being optimistic and not considering more expensive licenses.
The value of steaming plus dvd/blu-ray is what sucks now. Depends on how much you use it; at $6-8 when, at best, I'd get maybe three or four blu-rays a month, it isn't worth it. Maybe if Netflix got movies day and date, but they don't. It's really easy to find better alternatives to that serivce.
it was practically a steal before, though. $8 for streaming only, $10 for streaming + DVD, $12 for streaming + blu-ray.