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"Exclusive content will strengthen Netflix' subscription business model and we applaud the company for this action," Askew wrote. In order to justify the estimated price tag, Askew believes Netflix will need to add an additional 3.7 million new annual U.S. subscribers, up from about 25 million today, which will be tough and could put the company's profitability at risk. Caris & Co.'s David Miller was less optimistic and cut his rating for Netflix shares to "Below Average" from "Average." With the on-demand part of the deal not taking effect until 2016, he questioned whether it will do much to boost the company's subscriber growth over the next two years. Just over two years ago, Netflix shares were pushing toward $300. On Monday, before the deal was announced, Neflix shares could be had for $76. THE SHARES: Up nearly 3.4 percent, or $2.80, to close Thursday at $86.17. Shares are at a seven-month high.
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