What is really crucial is if overall, developing original content carves out a financially viable niche for Netflix. Once created, the content belongs to Netflix forever, and the ability to monetize content changes over time.
Just like my brother and I jockeying for the best couch position as kids, Netflix is bound to win and lose a few. In the process of trial and error, they will learn where the best position is.
For the sake of investors, Netflix needs to increase customer monetization, and as a customer I hope they do. I would love to spend more money on Netflix, and while that statement may at first appear counterintuitive, let me explain.
If my wife and/or I want to watch a new release, it means we are driving to the local video store or to a Coinstar (CSTR) Redbox. I wanted to watch Zero Dark Thirty and Django last weekend, but they weren't available on Netflix, regardless of how much I was willing to pay extra.I rented Zero Dark Thirty but skipped Django (sorry Tarantino) because I didn't think (rightly) I would have time to watch both and get them returned in time. I could have simply rented both and planned to pay late fees (I have utilized that strategy in the past), but as small as late fines are, they simply suck to pay. If Netflix offered the movies as pay-per-view, I would have paid double the price of Redbox, even though it may appear I am unwilling to do so through Redbox. Regardless, if you place a value on your time or not, no one except maybe a newly licensed 16-year-old enjoys making a trip with the sole purpose of returning a DVD. Unlocking the key to customer convenience will simultaneously unlock greater returns for shareholders. It won't happen in time for me to watch Django on Netflix, but it should happen soon if Netflix is expected to grow much beyond $220 a share. At the time of publication, the author had no position in stocks mentioned. Follow @RobertWeinstein This article was written by an independent contributor, separate from TheStreet's regular news coverage.