NFLX is in a prime position to dominate the Internet television market
Analysts at Cantor Fitzgerald predict that Netflix, Inc. will become a force to reckon with as Internet TV becomes more and more popular. They have raised their price target for the stock and predict the company will introduce premium priced packages, possibly starting this year. Such packages would enable the company to increase the amount of revenue each customer brings it.
NFLX is in a prime position to dominate the Internet television market, according to analysts at one firm. Analysts at Cantor Fitzgerald have raised their price target on shares of Netflix, Inc. (NASDAQ:NFLX) to $180 per share and reiterated their Buy rating on the stock. Their price target comes out in stark opposition to the target set by Wedbush analyst Michael Pachter, whose target is $55 per share.
I wonder what gives him the impression of price tiers. The problem with that idea is that Netflix doesn't pay per susbcriber for content, they pay a fixed cost, so better to spread out costs over everyone. That's not the case with the 4-5$ new release rentals, but there's no market for those.