Netflix, Inc. (NFLX)’s Key Advantage, In Detail

Surprised? Don’t be. According to a recent Cowen survey, House of Cards appears to have pulled in at least as many viewers as Girls, the award-winning comedy drama that’s been a hit for Time Warner Inc (NYSE:TWX) unit HBO. More than 870,000 have rated House of Cards as of this writing, giving the show an average of 4.5 out of five stars.

For investors, the point is that Netflix is never going to run out of these sorts of reclamation opportunities. Several well-received shows suffering from marginal ratings could soon be canceled. Here are two I think could see new life on Netflix:

1. Happy Endings. Another quirky comedy with an ensemble cast — think of a much weirder (and funnier) version of Friends and you’ll get it — has struggled to reach 3 million viewers for ABC. Those who do watch are uncommonly loyal, however.

2. Community. Stars The Soup‘s Joel McHale in a comedy about a group of misfits attending community college for unlikely reasons. Oh, and did I mention Chevy Chase is in the cast? Unfortunately, only 3.7 million smart people watch this show regularly.

I’m rooting for both shows to go on, but it could be awhile before we know the fate of either. Until then, we can take solace in knowing that Netflix, Inc. (NASDAQ:NFLX) is bringing back the banana stand.

Welcome back, Michael. Mom and Buster are waiting for you at Balboa Towers:

Source: Netflix, YouTube.

The article The Michael Bluth Effect: Netflix’s Content Advantage Explained originally appeared on Fool.com and is written by Tim Beyers.

Fool contributor Tim Beyers is a member of the Motley Fool Rule Breakers stock-picking team and the Motley Fool Supernova Odyssey I mission. He owned shares of Netflix and Time Warner at the time of publication. He was also long Jan. 2014 $50 Netflix call options. Check out Tim’s Web home and portfolio holdings, or connect with him on Google+, Tumblr, or Twitter, where he goes by @milehighfool. You can also get his insights delivered directly to your RSS reader.The Motley Fool recommends AMC Networks and Netflix and owns shares of Netflix.

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