I don't know why you're being downvoted; this seems at least plausible. In this scenario Netflix would still have dominated streaming over the past number of years, so they would have had a huge platform from which to pitch their parallel physical media service. Given its infinite selection, it's at least possible it could have caused a substantial number of people to hold onto their players.
It's a dying medium. The foundations have moved; internet got insanely cheap and fast, if Netflix hadn't done this somebody has would have eaten their lunch.
Everyone with a playstation or an xbox has one.