An internal team at Netflix developed a prototype set top box to enable the direct streaming of content to customers' television sets. However, the idea of offering it to Netflix customers was dropped because:

$$ all major US cable firms built Netflix streaming into their set$-$top boxes.

of the brutally competitive nature of the consumer electronics business.

the market for online streaming was nascent and unprofitable.

the entire software team was recruited by TiVo after Linkedln made it easy to target and poach rival talent.

$$ the Blu$-$ray standard requires streaming features, as well.