Netflix Crushing Blockbuster

It's increasing its streaming service. It's capturing more customers. It's crushing its rivals like so many cockroaches.

It's good to be Netflix(NFLX Quote).

And it got especially good today, when the DVD-delivery service was upgraded by an analyst at Wedbush Morgan to buy from hold, sending shares soaring 7% to close at $40.40.

"The company continues to attract customers from brick and mortar chains, and continues to retain customers by offering its unique streaming proposition," Wedbush Morgan analyst Michael Pachter wrote in a note.

Netflix has been steadily **growing market share, and is poised to surpass Blockbuster(BBI Quote) as it ramps up its streaming service, cutting postage costs for physical DVDs and boosting profit margins.**

It begs the question: Why would anyone drive to a Blockbuster store when they can get DVDs delivered straight to their mailbox or home computer? The answer: They're not.

In April, Netflix posted a 68% surge in first-quarter earnings to $22.4 million, or 37 cents per share, and said it has added 1.6 million subscribers since September, giving it more than 10 million customers.