Video streaming giant Netflix (NFLX)  believes that platforms like it and others are replacing linear TV, the company said in its second quarter earnings letter to shareholders

"Creating a TV network is now as easy as creating an app, and investment is pouring into content production around the world. We are all co-pioneers of Internet TV and, together, we are replacing linear TV," Netflix said.

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While the company admits that linear TV is huge and can still grow, the Internet presents an "incredible" chance for expanding the video entertainment business around the world, Netflix wrote.

Netflix believes the shift from linear TV to on-demand viewing represents such a vast opportunity that many Internet TV services will be successful.

And due to the "largely exclusive" nature of varying service's content offerings, Netflix believes they are not in direct competition, but instead they complement each other.

"The large-cap tech companies, especially Amazon (AMZN) , are investing heavily in original and licensed content around the world. They join all the existing TV networks (BBC, AMC, NHK, etc.) of the world, and us, in bidding for great content," Netflix argued.

Shares of Netflix were surging in after-hours trading on Monday after it reported stronger-than-expected results for the second quarter of 2017 and gave an upbeat outlook for the third quarter.

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