Netflix (Nasdaq:NFLX) Subsriber Base May Rise 33 Percent in 2011

While the leaving of Netflix (Nasdaq:NFLX) CFO Barry McCarthy challenging time for the company, and companies like Google (Nasdaq:GOOG), Amazon (Nasdaq:AMZN), Apple (Nasdaq:AAPL) and Time Warner (NYSE:TWX) taking major runs at them, some analysts believe the subscriber rate in 2011 will grow by up to 33 percent based on migration from DVDs to streaming video.

Canaccord said, "The mail-order and online movie-rental service said longtime CFO Barry McCarthy is leaving, ostensibly to pursue 'broader executive opportunities.' McCarthy had served as CFO of Netflix since 1999 and led the company's initial public offering in 2002. He had previously announced his intention to resign in 2004, but later reversed his decision. Taking over for McCarthy is David Wells, who has served at the company for nearly seven years and combines both senior analytical and operating experience. He most recently served as vice president of financial planning and analysis, reporting to McCarthy. Although Wells is no doubt a capable replacement, the change could shake the foundation of Netflix heading into 2011. In a note to clients this morning, Jefferies analyst Youssef Squali lowered his rating on the stock, writing that McCarthy 'leaves behind big shoes to fill, particularly at the current juncture.” He added, “Virtually everybody is gunning for it, from tech platforms like Google, Amazon and Apple, to content owners like Time Warner. Having said that, Reed Hastings, CEO, remains firmly in charge as the man behind the vision.' Squali sees the company’s subscriber base rising 33% next year, to 25.5 million, with DVD use dropping by 18%, making the company more focused on streaming."

Netflix closed Thursday at $191.05, up $2.82, or 1.50 percent.