Netflix has actually been dropping content. Something in excess of 4,000 titles this year. No more South Park!
Their rationalization is they want to become a TV network and produce more original content. I support that, given that a
lot of what they've produced has been high quality stuff. Some of it (e.g. Sense8) has been
spectacularly good.
But I am still dismayed by the lack of quality classic movies. My grandson and I share a love of sci-fi, and I've been turning him on to decades of must-see films (he's 15, so he'd never seen The Thing, Alien(s), eXistence, The 13th Floor, Big Trouble in Little China or even the Star Wars series). So far my hit rate for finding these on Netflix has only been about 5%. They'll often have the crappy sequels but not the originals, or they'll have the low-budget knockoff versions.
Luckily, I have an extensive collection of DVDs to mine.