7 Reasons to Still Believe in Netflix, Inc. (NFLX)

This may seem to be a tough time for Netflix, but keep in mind that it already has plenty of multiyear deals in place at earlier rates.

Netflix also wanted to emphasize how differentiated the different streaming platforms have become. Of the 200 most watched titles on Netflix, Hulu has just 32 and Amazon Prime Instant is at 68. When your nearest competitor — Amazon.com, Inc. (NASDAQ:AMZN) — has just a third of your most magnetic content, there will be room for TV buffs to subscribe to multiple cheap streaming services.

7. Two’s company but three’s a business model

Netflix boasted that it has ordered second seasons for all of its original shows except for Arrested Development, yet it’s also open to a second season of the cult fave if it can work something out that’s favorable to all parties.

However, twice during last night’s video earnings call, Hastings made comments about “three, four, or five seasons” of House of Cards. Nothing appears to be in the works. It seems unlikely that David Fincher and Kevin Spacey would sign on for that long. However, it’s an important reminder that we’re still in the early innings here.

It’s hard to fathom Netflix being as sticky as Time Warner Inc (NYSE:TWX)‘s HBO when it comes to original programming. There’s a reason why folks are paying twice as much for HBO, and that’s on top of their chunky cable or satellite television bills. However, as some of Netflix’s more successful shows do get extended seasons, it will be that much harder to let it go.

If you just like one show on HBO, you’ll subscribe for three months, nixing the premium movie channel the rest of the year. If you like several shows — on HBO or Netflix — you’ll stick around because it’s just easier that way.

Nothing but Netflix

The market didn’t seem to like Netflix’s numbers, but there’s plenty to like if you know where to look.

The article 7 Reasons to Still Believe in Netflix originally appeared on Fool.com and is written by Rick Munarriz.

Longtime Fool contributor Rick Munarriz owns shares of Netflix. The Motley Fool recommends DreamWorks Animation. It recommends and owns shares of Amazon.com and Netflix.

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