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 (
) -- Shares of
suffered a notable decline during the past week after
introduced its lower priced
streaming service for its own subscribers.
Overall rising competition against Netflix in the U.S. has started to accelerate, and the company will need to step on the gas pedal of innovation and content acquisition to stay ahead. Comcast is just one example but there are others such as Blockbuster, Hulu,
, which are getting more serious about
pursuing the online streaming market.
See our complete analysis for Netflix
To counter the competition and compensate for loss of Starz content upon deal expiration, Netflix has been continuously enhancing its streaming library with both older and new exclusive titles such as "House of Cards," "Lillyhammer," "Hemlock Grove" and "The Arrested Development."
Recently, Netflix acquired exclusive rights for some of the movies and documentaries from The Weinstein Company in a multi-year deal that includes some high profile titles that have been nominated for Academy Awards.
Furthermore, Netflix is nearing a deal with Univision Communications to stream the Spanish language tittles to its U.S. subscribers. This move will address a key demographic that encompasses about 16% of the U.S. population. Netflix's competitor Hulu has already started offering Spanish language programming.
On the technology front, Netflix made it clear that it has no current plans of bringing its streaming to Blackberry devices, making a dent into reputation of already troubled
Our price estimate for Netflix stands at $133, implying close to a 20% premium to the market price.
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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.