I think home media is done for them, outside of the films anyway. Smaller profit margins, and less return payments/repurchases. It doesn’t make financial sense.

Netflix doesn’t release their originals on DVD/BD when they don’t have to. What happens is that other production companies produce those shows and films, then can release them separately from Netflix unless Netflix puts it in the contract not to. In these cases, another company is making more profit than just through Netflix, and Netflix still gets a cut.

For example, Disney doesn’t make money from the Marvel shows living on Netflix after the initial deal. They do make money off of iTunes/DVD/BD sales. Netflix let’s them do this, or Criterion release Marriage Story, etc. because they get a percentage of those profits too: everyone is making more money. But with something like Mandalorian, Disney makes all the money already from it streaming on D+. They don’t need to share with other companies or production costs of the physical media itself. They make more money by keeping it on their service only.