If I understand correctly, a major player at Netflix actively doesn’t like theaters and sees them as competition to eliminate.
On a completely separate tangent: You remember those occasional attempts at online virtual hangout zones back in the 2000s? They were implemented in anything from Flash to the Source engine, often resembled a physical shopping mall, “Hang out with your friends, customize your avatar, engage with today’s products and brands!” And a lot of them tried to have virtual movie theaters, because of course people wanted to sit in their computer chair in front of their 15 inch CRT and watch a very low resolution “whatever will fit down a 2002 era DSL connection” stream of Shrek 2 in its entirety. And of course it never really happened that often because no one would license them the rights to any decent movies.