Netflix, Inc. was a market darling in 2015 with the company's shares rising more than 100 percent over the course of the year. The company's dominance in the streaming market and ability to hook users on quality original programming gave the firm a leg up against competitors and gave investors reason to believe in the company's future plans.

However, at the beginning of this year, shares of Netflix suffered a near 4 percent loss after analysts at Baird & Co. downgraded the stock. Baird echoed a concern that investors have been weighing up for months saying that the company's slow subscriber growth in the US is a red flag. The firm cautioned that the company's spending may have outpaced its growth, a dangerous combination.

Programming

Netflix (NFLX, quote) has prided itself on being a leader in producing quality original content and offering its subscribers a wide range of TV shows and movies they may not be able to get elsewhere. However, some believe that the firm spent too much competing for content, especially abroad. While the firm's original shows won several awards last year, the cost of creating and acquiring may have significantly outpaced the amount Netflix was able to raise.

International Expansion

Netflix's promise to make its way across the globe in 2016 may sound like an appealing growth plan, but international expansion may be a difficult undertaking. Not only will Netflix struggle with broadcasting rights and content costs, but some countries lack the infrastructure to support streaming, something that will slow down sign ups.

What To Do?

It's true that Netflix has a rocky road ahead, but TV streaming has become exponentially more popular over the past year and is expected to continue grabbing market share from traditional cable. With Netflix already established as a dominant player in that field, the company represents a good way to play the streaming revolution in the longer term.

Content courtesy of Benzinga written by Laura Brodbeck, Benzinga Staff Writer