This doesn't necessarily have to be a bad thing. HBO has great content but they're still stuck, for whatever reason, in the mindset that all of their content has to originate on live television, which limits the amount of content they can provide. Netflix, on the other hand, produces a ton of content because they don't worry about whether they can fit all of it into a 24 hour / 7 day time frame. This also gives them the flexibility to be patient with niche shows that develop a small but passionate audience.
Ten years ago, HBO could have been Netflix if they'd had the foresight to rebrand themselves as a media vehicle instead of just a channel. They're still a strong #2 (and their content is easily #1) but they could be even bigger. The obvious next step is to start releasing shows all at once instead of episodically.