Notable Netflix Analyst Thinks The Market Is Big Enough For Everyone

One of the key debates Netflix, Inc. NFLX among investors and analysts is what will happen to the competitive landscape as the streaming video market continues to grow.

Speaking as a guest on CNBC's "Squawk Box" segment on Monday, Instinet's Anthony DiClemente answered this pressing question. He believes Netflix is the market leader today with tremendous market scale. The company's already existing scale could prove to be even more valuable when considering the billions of people across the world, but it will gain access over the years.

Perhaps more important is the fact that Netflix is in a much better position today to pay for compelling content as the costs are amortized over its growing global scale.

Netflix In Relation To Facebook

DiClemente's longer-term valuation model of Netflix implies the streaming video platform will boast 150 million subscribers in three to four years, a likely conservative figure when considering Facebook Inc FB already has almost two billion users. As such the market is more than big enough for all players to succeed, especially at a time when consumers are becoming even more "frustrated" with the traditional TV model.

By comparison, Netflix offers a solution to frustrated consumers by being available across multiple platforms and making use of advanced technologies to offer a much more personalized solution.

"These are all the things that are important and driving the value for Netflix," the analyst said.

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