This is not quite accurate. They already have a layer 1 blockchain called the Theta Network and the streaming site was used as a proof of concept for decentralized video delivery via edge caching. They took the streaming site down because people were confusing it as the main product of the company.
On September 19th, 2023, #Theta TV will be no longer available as another streaming alternative, due to the parent company that owns and operates its network re-purposing for be a Theta Blockchain promotional site.
Discussion
Isn't that a TLDR of what I said?
If I said anything else, let me know.