They do it because they can. They are squeezing every last drop out of their customers. Clueless people with roo much money won't cancel. People who want to keep the product but are feeling the squeeze will go ad supported.
The rest were probably going to leave at any price as there is a lot more competition now and Netflix has adapted very poorly.
People either hop between services or go sailing wearing an eye patch or increasingly just so something else.
I think a lot of viewing time has been lost to social media, gaming and other alternatives. Don't know if most people these days have the attention span for day long binges with their phones going off every few minutes and the FOMO. I can handle sitting in a room watching a movie with someone with them looking at their phone for half of it
