After all, where are we going to go?
made official what I have anecdotally observed among my social circle: almost everyone who canceled their Netflix subscription over the "Qwikster" debacle has come back. Honestly, what else are you going to do? Watch television? Have you SEEN what they put on television these days? It's terrible!
(And if it isn't terrible, wouldn't you rather watch the entire season at once without commercials? Of course you would!)
I have several friends who quit Netflix in a big huff, only to sheepishly return later. I usually only find out when they mention having watched something, and I ask something like, "Oh, is that on Hulu now?" And they have to cop to going back to Netflix.
Netflix is the bright red 500 pound gorilla. And it got that way by being the best. If you want to watch streaming television, your options are extremely limited. Amazon Prime is a pretty good substitute, but a lot of people aren't ready to make the $80/year jump. (It just seems like less of a risk when Netflix charges you $12/month, versus paying Amazon the equivalent of $6.50/month but all at once.) And reports from my friends are that Amazon Prime doesn't have the selection that Netflix streaming does, as paltry as its streaming service is (compared to the disks).
Or there's Hulu, of course. But Hulu is only useful if you buy Hulu Prime to unlock their archives. Here again we have a limited selection, and a lot of people just can't bring themselves to pay for a service (Hulu) which they feel ought to be free. There are also some compatibility issues, where people find that they can watch Netflix but not Hulu on their device of choice.
As for disks, Netflix is where it's at. Blockbuster is closing store after store, and I gave up on them after they mandated the "hard upsell" at the register. Redbox machines are convenient and cheap, if you don't watch many movies, and if you just want to see "whatever is new," rather than anything interesting, arty, off the beaten path, or more than a month old.
No, Netflix, we wish we could quit you, because sometimes your decisions can be vexing. (Even so, I have to admit, I was never all that vexed. I thought it was silly, but I understand that the prices for things go up, and that the days of physical DVDs are limited.)