Netflix reporting its first loss in seven years

Netflix is expected to report its first loss in seven years.  The first year or so of my Netflix subscription was great, good movies were easy to find as well as TV shows.  However, after a year or so the movie selection slowly dwindled after having watched most of the good ones.  Why is Netflix, a company that revolutionized the way we watch movies having so much trouble and what can they do to reverse this problem?

Netflix after a while gets stale.  The movies on there are either pretty old or are amateur in quality.  Sure you can find good ones, but after a while they are few and far between.  Companies like HBO and Showtime won’t allow their popular TV series such as Game of Thrones or Dexter on Netflix because they make more money selling DVDs.  It seems Netflix is increasingly becoming useful for only TV shows and children’s content.

With content prices going up and competition increasing, what can Netflix do to keep profitable?  The problem doesn’t really fall on Netflix’s hands, it’s copyright owners.  Movie and TV show producers won’t allow their content to be distributed on Netflix.  If premium content from HBO, Showtime, and Starz was released to Netflix, their subscriber base would go up.
Netflix
Currently HBO and the likes don’t have an adequate method of content distribution.  If Netflix could work out some deal with them, it would be wonderful for everyone.  Many people would subscribe to Netflix to see newly released episodes of shows like Game of Thrones.  It seems like it would be a win win situation for all involved parties.