Piper Jaffray Puts Netflix on Alpha List

StreetInsider reports that Piper Jaffray has added Netflix to its Alpha List.

The firm points out that Netflix.com's traffic is still outperforming Blockbuster.com (based on Alexa traffic data). Specifically, over the last three months, Netflix's site has seen an increase of ~16% in traffic, while Blockbuster's site has seen a drop of ~10% in traffic.

Surprisingly, DVD by mail only makes up less than 20% of the movie rental market. Piper believes this leaves Netflix with a huge area to grow. Additionally, as Blu-Ray is becoming more and more popular (especially after the death of HD DVD), Piper believes "consumers will continue to transition more and more to DVD by mail vs. retail rental stores."

Comments

[Old Timer Too]

Given the move away from BB toward NF, the differences in traffic (BB decrease/NF increase) are predictable.

Add to that the slug nature of the BB site vs the responsiveness of the NF site (in comparison) and I much prefer to use NF. BB has become so slow (under IE7) that I dread having to check anything on the BB site. BB locks up under Firefox with even moderate queues, but not so NF.

Even with the recent changes to the NF site and some impact on its responsiveness, it is far and away better than BB's behemoth.

But even then, NF is now the better service and no amount of begging or enticements will easily win back my allegiance to BB after last year's fiasco over programs and pricing.

[Wil]

Alexa rankings are meaningless since nothing is known about how few people have installed Alexa on their browser.

[Michael]

Fiasco? Seriously, considering how many more DVDs you get with Total Access, it's still way cheaper than netflix. They shouldn't have to entice you. It's just a better deal.

[Michael]

Fiasco? Seriously, considering how many more DVDs you get with Total Access, it's still way cheaper than netflix. They shouldn't have to entice you. It's just a better deal.