Monday, December 6, 2010

Morgan Stanley (NYSE:MS) Believes Netflix (Nasdaq:NFLX) Can Maintain Competitive Advantage

Morgan Stanley (NYSE:MS) stated today that even though Netflix (Nasdaq:NFLX) is sure to attract stiffer competition in the future because of their success, they see several elements should although them to maintain their competitive advantage.

Analyst Scott Devitt gave this as his reasoning:

"We believe Netflix has a sustainable competitive advantage, owing to: 1) a significant lead in over-the-top device distribution; 2) an unrivaled portfolio of subscription-based digital content rights; 3) best-in-class technology architecture; and 4) an iconic brand in streaming video. While Netflix’s success will likely invite more intense competition in the coming months, we believe its scale, value proposition and consistent execution position it as a long-term beneficiary of the global secular growth in digital video."

Netflix was trading at $192.89, up by $7.44, or 4.01 percent as of 2:24 PM EST.

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