How can Netflix stream TV shows not available on DVD?

I've noticed that there are some TV shows streaming that you can't buy on DVD. While it is nice to be able to see them, I wonder where they are getting these shows, and why they are not being released on DVD if they are obviously popular enough for Netflix to offer to its customer base.
Answer:

the companies that own the show supplies and licenses it to netflix for streaming Any Streaming title by Netflix has to be licensed and supplied by the company that owns it Hey Arnold is Streaming and it's not on DVD (yet). But Nickelodeon's owner Viacom supplied it to Netflix for streaming

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Other answers

Obviously it's for business reasons. One obvious thing - it's cheaper for a company to make their videos available on Netflix than on DVD, because they don't actually have to stamp out thousands of actual DVDs - which costs a few dollars per disc.

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