NetFlix (Nasdaq:NFLX) Plus Tablets Equals Profits

There can be no doubt that NetFlix (Nasdaq:NFLX) will be a major beneficiary of the booming tablet market, and probably is one of the biggest sales accelerators of the device.

Goldman Sachs (NYSE:GS) agrees, saying "We believe that the growing tablet market should drive strong subscriber growth for Netflix in 2011," calling it a "killer app."

For the longer term, Goldman also sees NetFlix benefiting from the growing interest in SmartTVs, although that'll probably take several years to make a difference, and who knows what competitors may arise in that time to challenge NetFlix and what effect that will have on the company.

But in the near term that's not a problem for NetFlix, and they should get some major positive impact from the exploding table market in 2011.

NetFlix closed Monday at $187.88, gaining $8.58, or 4.79 percent.


As more SmartTVs are sold, the need for search and guidance will increase, benefiting Rovi, the firm notes.

Despite positive comments, Goldman rates both Netflix and Rovi at Neutral.