Remarkably few companies die of innovation. People have subscribed to Netflix. It solves the problem of having something to do when lazy. People won't really switch to watch Game of Thrones or Simpsons if they can still marathon Friends for years. I've been marathoning Adventure Time with my kids since last year, and even though it's the only thing I watch on Netflix, it's still a better deal than buying whole 10 seasons.

It'll probably be the WhatsApp effect - everyone knows it's inferior and play with changing but it's just too much effort to. Netflix has some lock in because people share their accounts with family members or even "family" they just met online, and people are hesitant to unsubscribe.