I am still puzzled by this,
as they took an executive decision to reduce the viewing experience, degrading the service agreement, their current subscribers were signed up to. To think that such a decision has been made in a boardroom to devalue the user experience is unapologetically anti-consumerism, and I am without doubt that they are already exploring options to monetise the problem they have created within their service ecosystem.
Besides, reading their snipped response it could also be interpreted that they couldn't provide a multi-user experience and hence had to limit concurrent streaming which is pointing to the service being overpromised.
All the above being excused with password sharing and piracy. Silly business.