You Should Be Scared for Netflix

In a matter of three months, Netflix (NFLX +0.23%) investors have gone from being cautious about the company's prospects to failing to acknowledge that competition exists. In this time, shares have skyrocketed over 100%, suggesting that investors have grown comfortable with Netflix's approach of becoming a content producer as a means to thwart off competitive threats. In its debut series House of Cards, viewers and investors alike are looking forward to Netflix having a bright future in the production business. However, what investors are failing to acknowledge is that competition has wised up to this strategy and will be mimicking Netflix's efforts. In this video, Motley Fool contributor Steve Heller explains that the threat to Netflix's should not be taken lightly.