Think of it like Netflix successfully became HBO faster than HBO could become them, so now they're expanding content to fit the new and old general demographics- the cable and youtube viewerships.

They're also big on data, so if they're making it, it's not because they think no one wants it. We share an account with my SO's sisters, and despite all watching about the same amount, it's amazing just how different (and accurate) the recommendations are for each of us.

You write this in the past tense, but the DVD service is alive and (mostly) well. ("Mostly" because they are not replacing rarer DVDs as they go missing from their inventory.)

I presently subscribe to both services because I love older films.

For most, a large enough selection instantly is much better than a full selection w/ a 3 day lead time