The following commentary comes from an independent investor or market observer as part of TheStreet's guest contributor program, which is separate from the company's news coverage.

NEW YORK (

Trefis

) --

Netflix

(NFLX) - Get Report

has been one of the leading stocks in 2012, beating the expectations of many bearish investors. Building on its positive start, the company has rolled out plans to support continued growth. One of these steps is bringing more original content to its platform. Recently,

CBS's

(CBS) - Get Report

management stated that it is in talks with Netflix to produce an original series for the online video rental company.

This implies that by 2013, Netflix will have five original series to its credit. Although this may not be significant enough to propel subscriber growth alone, it definitely helps build a competitive edge against other players such as

Amazon

(AMZN) - Get Report

and

Dish Network's

(DISH) - Get Report

Blockbuster.

Even with these new series in the catalog, the original programming will be a miniscule portion of total viewing for Netflix's subscribers. Nevertheless in the future, it will be critical to see the popularity of these new shows and if a couple of them become a hit, it could entice new subscribers to join Netflix.

See our complete analysis for

Netflix.

The company also recently shared its expansion plans with investors. Netflix stated that it expects to have 60 to 90 million subscribers in the U.S. and become more than twice the size of HBO. These are grand ambitions as we forecast the company to reach a subscriber base of about 43 million by end of our forecast period, which extends through 2018. However it is interesting to see the level of upside that Netflix's stock can witness if the company was to achieve its target in next six to seven years.

Even the low-end of this target presents significant upside opportunity. You can modify our forecast above to see that our price estimate can lift by 25% if Netflix can reach 60 million U.S. subscribers by end of our forecast period. This move implies that Netflix would gain more than 5 million subscribers each year for next seven years (including 2012).

It's ambitious but not impossible if Netflix can maintain its competitive lead, have success internationally and fight off competition. In time to come, other competitors can potential catch up in terms of content and therefore Netflix will need to continue to excel in other dimensions. These include personalization of content, bringing a social aspect to video viewing with help of Facebook, making the user interface more intuitive and easy, and penetrate a large number of internet-enabled devices.

Our

price estimate for Netflix stands at $133, implying close to 10% premium to the market price.

Click

here

to find out how a company's products impact its stock price at Trefis.

Like our charts? Embed them in your own posts using the

Trefis Wordpress Plugin

.

This commentary comes from an independent investor or market observer as part of TheStreet guest contributor program. The views expressed are those of the author and do not necessarily represent the views of TheStreet or its management.