By Bill Maurer:When it comes to Netflix (NASDAQ:NFLX), the bull/bear debate continues to rage on. There are those that believe the company is just scratching the surface of its potential, while others see a stock that is extremely overvalued. As someone who has been on both sides of the fence, I've found a growing number of bears that miss a number of key points. Today, I'm going to discuss a couple of key items the bear side misses, and why they are extremely important for Netflix and those who wish to be long.
Point 1 - The importance of DVD:
Because contribution margins are highest in the DVD segment, the bear camp seems to overstate this segment's importance. Two years ago, the DVD segment represented a third of Netflix's total revenues. However, in the latest reported quarter, DVD revenues represented just over 14.5% of Netflix's total...
