Netflix (NASDAQ:NFLX) Should Generate New Subscribers with Streaming

Now that Netflix (NASDAQ:NFLX) has seriously entered the streaming market, Needham & Company sees them generating new subscribers for the business, which shouldn't do much as far as cannibalization goes, although there is bound to be a small percentage involved.

Needham, which maintains a "Hold" rating on Netflix, said, "Netflix announced a streaming-only subscription plan and raised the prices on its combination by-mail and streaming plans. The streaming-only option should enable the company to add new subscribers who have no interest it its by-mail subscription plan. We continue with 2010 and 2011 estimates of $2.85 and $4.55 respectively. We also continue with a hold rating solely for valuation reasons."

Netflix closed Tuesday at $187.71, falling $0.61, or 0.32 percent. Trading volume was up over 30 percent on the day from its 3-month average.