Netflix is not at all a concern for the Nuvola NP-1. In it could help NTEK sell more of them if Netflix pumps out 4k content.
Smart TVs child provide competition but at the moment, price wise , can't compete. Also David mentioned that the NP-1 with it's Android software allows you to do more than other set top boxes and Id throw smart TVs in that lot too.
Something to also consider is the Tegra 4 factor. You have a high quality gaming chip capable of supporting graphic intense games. That and it's ability to scale 720p to 4k is what'll help set it apart.