On a day when Wall Street shares were not at their
best, streaming video services provider Netflix, Inc.(NASDAQ:NFLX) was a bright
spot gaining as much as $1.3 on fresh hopes that the company was able to take
on its competition and maintain its leadership status.
In fact investors are anticipating that the company
will attract a good takeover bid.
According to the Associated Press, research group
Sandvine, put out a report on Wednesday which measured the usage of Internet
services and found that the library of movies and old television shows
available with Netflix were popular with web surfers.
Netflix now has competition from other companies such
as Amazon and Hulu.
The analyses by Sandvine showed that about one-third
of videos downloaded in North America were from Netflix with Google's YouTube
following a distant second at 15 percent.
Amazon.com accounted for less than 2 percent of the
peak usage, and two other major Netflix rivals — Hulu.com and HBO's online
service, Go — were even farther behind, according to Sandvine.
Despite price increase undertaken by Netflix last
year, which angered subscribers, the company still managed to be popular and
its share had not diminished inspite of the competition.
"Even in the face of increased competition ...
Netflix continues to define the market for long-duration video streaming in
North America," Sandvine said in its report.
There is also a lot of speculation that has crept into
the market about Netflix being a potential takeover target. Wall Street feels
that Amazon, which also provides a similar service under Amazon Prime, is the
most likely candidate to acquire Netflix as it looks to ramp up its services.
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