Netflix (NASDAQ:NFLX) recently reported excellent earnings. Motley Fool analyst David Meier has taken a careful look at the report and has found the one thing that every investor needs to know about the company.

In the video, David explains why the incremental subscriber is extremely valuable to Netflix. After discussing the company's economics in some detail, David concludes by making the case for a long-term investment in Netflix.

David Meier has no position in any stocks mentioned. John Reeves has no position in any stocks mentioned. The Motley Fool recommends Netflix. The Motley Fool owns shares of Netflix. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.