We rent movies on-demand via either Amazon (streamed through my TiVo) or via AppleTV. It gives us access to stream new movies with a pay-as-you-go pricing structure which is more in-line with how many movies we watch (probably one a month, if that). For us, Netflix was never a replacement for cable because there's still enough live content on cable we wouldn't get via Netflix, or without having to jump through hoops to easily get onto a television.

Netflix made the catastrophic mistake of reminding their customers how much they were paying for their service at the exact time new content was back on television ... then did it again a couple weeks later. They couldn't have executed any worse IMO.