My esteemed colleague Rick Munarriz's concerns are certainly logical ones. However, I still think that much of the negativity surrounding Netflix (NASDAQ:NFLX) is short-term concern.

Rick mentions the idea that the video downloads will reach mainstream sooner than we think and thus threaten Netflix. While I'm a big believer in the future of digital video, I still think there are plenty of obstacles to widespread adoption. Unless you're downloading a popular file on a peer-to-peer site (and for the most part, that's illegal, although BitTorrent's trying to legitimize its service), video downloading can be a pain. It's time-consuming and the files are extremely large, which makes it a very different proposition from downloading the smaller files of songs and albums. Plus, movies don't have the same allure as music when it comes to portability or even the bragging rights one gets from showing off a killer music collection.

PC World recently reported that Forrester Research has theorized that fee-based video downloads won't make sustainable long-term business, especially considering the current push to high-quality video streaming by major media companies (and of course, Netflix is already ramping up video streaming through its site, so perhaps there's method to its non-downloading madness). A recent research report believes that Apple's (NASDAQ:AAPL) iTunes video business and related Apple TV are "dead ends," with video downloading mostly appealing to "media junkies". Forrester's data shows only 9% of online consumers have paid to download a movie or TV show. If such theories prove correct, it will likely be a win for Netflix and its subscription model.

Rick is also right that Blockbuster's (NYSE:BBI) Total Access program is an appealing value proposition, but as soon as Blockbuster starts to hike its fees -- as it must eventually do, the way things are going -- I'd imagine the customer backlash will be significant, and many of the defectors will flee right into Netflix's waiting queues. (And let's not forget, Netflix is pretty good at making its customers happy.)  

It's easy to perceive the glass as half empty for Netflix right now. However, I think investors who underestimate the company's long-term vision and competitive strengths may one day regret their bearish attitudes.

Think you're done? You're not!

Netflix has been recommended five times for Motley Fool Stock Advisor, with four active recommendations still on the scorecard. To see what other companies David and Tom Gardner have recommended to subscribers, click here for a 30-day free trial.

Alyce Lomax does not own shares of any of the companies mentioned.