Netflix on the Rise?

The online video distributor seems to be partnering up with everybody to try and get their product out to users through various different mediums. By year end, Netflix (NFLX) customers should be able to view movies through the website, Xbox 360 and PS3, and now TIVO. Oh yeah, and if you still use that thing called mail. I’m sure I am probably missing some other partners. This all comes at no extra cost to your current membership fee.

At first glance, it would seem that Netflix is a horrible play during a rough economy; however, in this new age of online media there may be some changes ahead.

It seems like every frugal personal finance site I visit, they all have discontinued their cable TV service and opted for a Netflix subscription. While it may seem crazy to some, you can almost watch all the same shows online now at no cost. The average cable subscription cost $33 a month, while the highest Netflix membership cost $16.99. Combine Netflix with the online sites and you really don’t need a cable service.

Although Blockbuster (BBI) and Netflix are commonly compared to each other, the only real similarity is the rental business and Blockbuster is failing at that; however, if you venture to online distribution Netflix is far ahead of any competitor.

Another aspect Netflix has going for it, is a bounce off its 52-week low. Depending on your time frame, possible price targets are $27 and $30. As the economy gets better and more people start to adapt to this new level of techology, longer term can see even better results.

INO - Check out a free trend analysis for Netflix