NFLX continues to stack its balance sheet with huge actual and off balance sheet liabilities for content. NFLX knows it must differentiate in order to survive as advanced services from Comcast (the newly announced X2) and DISH (the Hopper) make NFLX obsolete for many customers. Unfortunately, NFLX can't drive the ARPU necessary to pay for the content it's acquiring, and its gambling that the shows it's buying will be hits (even the best networks have many flops, sometimes droughts that last years - NBC for instance). Moreover, it lacks the power of a linear channel to deliver the potent lead-ins that drive viewership. FInally, binge viewing is a fad, not unlike what we say in the early days of DVD sell through.
As such, this recent run up is a gift for those who have been long, and those who now want to get short. It's entirely possible that we will end up back well sub $100 in less than a year's time - after the market fully assesses the power of the transformation occurring in cable, and the lackluster earnings as a result of continued acceleration in the cost and breadth of NFLX's content library.