This is a big sore point for my wife and I, too. I think the last show I tried watching even close to its release was Altered Carbon, which was a huge advertising thing for Netflix, and I thought it was pretty well received. But then they canned it anyways.
IMO, the "binge watching" model that worked really well for them in the early days, as it turns out, doesn't hold viewer engagement over time for new properties. People sat and watched Friends or Star Trek all day because they were old familiar shows, and they'd been in the public consciousness for literal decades by the time Netflix was streaming them.
But a new show, released all at once, meant that your viewers would watch a whole season on a Saturday and then... wait a year or longer for more of the show, and by then they'd have forgotten about it. Contrast this with old broadcast schedules, where a show's "off season" was basically... three months in summer. And half of that time was spent advertising the "exciting new season!" so viewers wouldn't forget about it.
I think this is one of the reasons some of the services have started doing weekly slower releases of shows, instead of dropping entire seasons at once.
TL;DR: they did it to themselves, somehow thinking a short 10-episode season of a new show would have the same mindshare and staying power of a 200+ episode sitcom that ran for 10 years and became firmly entrenched in pop culture.
Netflix definitely has a habit of canceling shows but Altered Carbon was a textbook case NOT of that. The show was handled like any other network show prior to streaming. I'm saying this as a fan - If anything they should have killed it sooner. That was the first show I watched where it was comically obvious the budget for the season had been reduced. Just from the sheer amount of times they go back to the same places in season 2 to reuse sets makes it obvious.
"In 2018, TV ratings company Nielsen revealed that according to their calculations, the first season of Altered Carbon was watched by around 2.5 million people in its first week. However, this number dropped off significantly, with only a reported 1 million of those viewers making it to the end of Season 1." newsweek
There's no way you can keep a show around with that level of quality (let alone maintain that production value on a sci-fi show) with such low numbers. The amount of spotlight Netflix gave the show and the decent reception critics gave it is likely the only reason we got a season 2. Even if it was clearly a lower budget.
Adjusting the budget of a show to its viewership numbers is hardly unreasonable and inline with what normal networks do. Even canceling "pretty well received" shows after a season or two if the numbers don't pick up. There's a number of notable ones every year. Some random ones that come to mind this year are The Great & Perry Mason.
Netflix had to drop most of the old famous shows as the original prices were not sustainable because rights holders undervalued their stuff since (before streaming) it was not near as valued in the decades prior. Then all these shows got more expensive once networks started making their own streaming services and pulled out their own shows basically regardless of price jacking up the price of the few that remained even more.
I note this because while I’m a little salty about Altered Carbon too, it's one of few times I’ve seen Netflix take a “fair and balanced” approach rather than outright canceling it. It's important to at least get the example right for a grievance.
"they did it to themselves" don’t forget dropping all the shows at once was what everyone wanted them to do including the ARS comments :/