"Getting a DVR from your cable company? Then don’t expect Netflix to run on it, even if it’s capable of doing so. TiVo boxes supplied by cable TV provider Suddenlink are stripped of their Netflix functionality, Light Reading reported this week.
However, the culprit isn’t the cable company, for once. Suddenlink says it would love to rent out TiVo DVRs with Netflix to its customers, but Netflix’s contracts with the studios don’t allow it to do so. Netflix has since confirmed the story, saying its licensing agreements don’t extend to devices supplied by pay TV providers."
Likely because the studios get a larger cut from the service provider relationships "per movie watched" vs what Netflix would have to pay as a royalty to the studio if you watch it thru them. A legacy of the days before streaming content services from the likes of Netflix. Of course, since the service providers are essentially cut out of the revenue stream if you watch via Netflix instead of "on demand", they have little motivation to argue for a change in this restriction. It's a "convenient" restriction for them.