Not sure how that incentivizes them to produce higher quality content? The existing loop today is still for users to resume their billed subscription when something of interest is released.
I'm assuming that practically nobody actually cancels their Netflix whenever there's nothing to watch and resubscribes when there is and so they probably consider existing subscribers money-in-the-bank and mostly try to acquire new subscribers. If they were instead trying to get their existing subscribers to use the service every month then they should focus on content (not necessarily Netflix original content, maybe just buy a blockbuster now and then, w/e).
