Morgan Keegan: Netflix Has 'Little to Worry About From Hulu Plus' (NFLX)

Following news that Hulu will be offering a monthly subscription option, Morgan Keegan reaffirmed its Overweight rating on shares of Netflix NFLX this morning. Conceding that Hulu Plus has a lot of recent content, Morgan Keegan notes that "Netflix offers a large base of cable and premium (e.g. Showtime) content as well as its core movie service." In fact, Morgan Keegan analysts "expect the services to be complements rather than direct substitutes given the minimal overlap -$18.98+/mo for unlimited TV and movies could provide a strong reason to "cut the TV chord."" Morgan Keegan also notes that Netflix "maintains an edge on the number of compatible devices for streaming." Netflix, Inc. is a subscription service streaming movies and television episodes over the Internet and sending digital versatile discs (DVDs) by mail to more than 13 million subscribers. Shares are trading down this morning, to $110.60.