It's because of VPNs. They don't want people to use VPNs, so this is a ban on VPNs for TV because smart TVs are very closed systems and Netflix is mostly used on big screens.
All the steps Netflix is taking are connected to the flawed system of constantly needing to grow. You can't grow forever. You can grow at the beginning by offering a good product, but at a certain point, that's no longer possible, and to continue growing in the short term, you have to worsen the customer experience (see Google search, they can’t grow anymore because they have a high market share so they got the recommendation to make search worse to grow because people will spend more time searching), which in the long term leads to the products/companys demise or go to new markets by offering other products, which Netflix isn't doing or can't do in order to continue growing.
There's a fine line that can't be crossed, otherwise customers will leave, and Netflix is always pushing against this line. Price increases, password sharing, mandated brain rot scripts, and now this. The time will come when they cross this line, and then it will be too late.
