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Netflix is a business, not an art studio. It has shareholders; it's concerned with the bottom line. It also has its root in big tech mentality, where everything is data driven. It looked at its metrics, crunched the data, and said the numbers no longer made sense for them (the show was expensive to produce). I won't bother regurgitating the viewership numbers etc; it's out there if you want a better analysis than what I can provide.

But what Netflix failed to capture or understand, or chose to ignore, or couldn't adequately monetize, was the surrounding and indirect impacts (economic, cultural, and otherwise) that Shadow and Bone had. It spawned numerous conventions appearances (e.g. Magic Con) and even standalone Grishaverse conventions (e.g. Into the Fold, A Storm of Crows and Shadows), merch, talks and public engagements.