Exactly what I've been telling everybody I know who's talked about this with me. The folks they lost are customers completely gone, but there seem to be A LOT of people who have effectively downgraded, myself included. And they're not sharing those numbers. So not only did you lose customers and have your revenue go to zero, another portion (how big is anybody's guess) are paying less on both accounts (my father in law never used streaming so now he's actually saving a couple bucks a month).
The funny thing is, how do you get those customers back? You'd probably have to throw a promo their way to try and lure them back (cause I know a lot of really pissed ex-Netflixters) further slashing your profits.
And I think they're very arrogant. They're perceived response when people started complaining seemed to be "pfft, we know some of you will go but we'll be fine". I'm not so sure y'all will.
I think Netflix should very publicly throw Hastings out on his ear, run a likely expensive "we f'd up and we're sorry" campaign and raise the prices slightly for combo-service (I don't doubt they needed to increase) and offer customers who left and/or downgraded in the last 3 months some significant incentive (one month maybe three of free or reduced cost service, free upgrade to 2 or 3 disc at a time service) to come back. In fact, offer it to all Netflix customers cause they should be thanking they're loyal fans for not leaving them. I doubt they'll do any of that cause their current leadership seems pretty clueless.