If Netflix Can Continue To Make Awesome Original Series It Should Be Able To Satisfy Wall Street's Thirst For More Subscribers

Analysts and investors are concerned with how Netflix plans to increase its subscriber base.

Netflix CEO Reed Hastings and CFO David Wells held a webcast yesterday in lieu of the traditional earnings call. The two explained that the company is investing in original series as a way to boost subscribers. Netflix calculates the cost of producing a show as an investment instead of an expenditure.

There was a "small but noticeable" member bump from "Arrested Development" but the bump didn't help Netflix reach the 900,000 new subscribers Wall Street was hoping for. Netflix added 630,000 subscribers in the U.S. during the second quarter bringing the total to 29.81 million U.S. subscribers.

Morgan Stanley's Scott Devitt and John Egbert believe that Netflix's original series are "yielding tangible benefits to member singups and churn."

Netflix also pointed out that it will produce original documentaries and stand-up comedy specials as a way to attract new members.

The company's newest series, "Orange Is The New Black" is doing better than Emmy-nominated, "House of Cards" and all other shows the company has released.

Each original series is doing better than the last which you could argue is a good thing. As long as Netflix can continue to demonstrate to investors and Wall Street that it is scaling quickly and effectively it will continue to perform well.