1 Primarily focusing on series
Netflix is immensely focusing on TV series rather than movies. It has also led them to produce and direct many series, making them busy enough while concentrating primarily on the series database.
2 Focusing on original content
They prefer spending money on original content. This is one of the reasons why Netflix has started creating and producing its own exclusive series. Also, it does not believe in broadcasting movies that can be streamed anywhere, such as Hotstar, Amazon Prime, etc. It believes in streaming limited and exclusive movie deals.
3 They have to get a license for movies
In Hollywood, many producers are reluctant in allowing streamers to let their movie streamed on their channel be it Netflix, Hotstar, Amazon Prime, or any other. If streamers or channels want to do so, they need to get a license for streaming a film.
4 Spending money judiciously
Instead of spending money on buying expensive movie licenses, the team of Netflix prefers spending in the production of a new original series. (See Why do people binge-watch TV shows?)
5 To maintain its subscription price
Although, you need to spare an extra amount as compared to other streaming services in order to stream anything on Netflix. That's why they do not want to make their subscription more costly. As if they will buy ample movies content, they need to spend more because of which they would have to increase their subscription price.
6 Buying rights is expensive
If they stream all the legendary movies on their platform, they would need to buy rights for all those movies, which they think is not a good idea. It is because they do not want to invest unnecessarily. They think series is bringing them a good and profitable business, so they are focusing on the same while keeping cash in mind.
7 High licensing competition
Many big players have entered the streaming industry including Amazon Prime, Hotstar, and HBO, who have made movie licenses costlier than ever before. (See Why Netflix is so popular?)
8 Most movies are on DVD
Netflix is aware that all the films can be sold on DVD without incurring any extra cost of licensing.
9 Licensing can be time-based
Buying a license for a particular movie is available for a specific period of time. Once the period is over, the license ends, and they will not be able to stream that movie again until they renew the license.
10 They drop shows that are not encountered with enough views
Netflix stops renewing the license of the shows that do not have the potential to bringing up considerable views. Their first target is to maintain viewers according to the licensing cost and make a profit thenceforth.