ForeScore, though, was more cautious about Netflix's future, especially since Amazon appears to be interested in invading the entertainment distributor's turf. "That is going to spell even bigger trouble for Netflix," study author Larry Freed, who is also president and CEO of ForeSee, said in a .

"The two companies used to vie for number one," he continued. "Now Netflix is floundering just as Amazon is making deeper moves into streaming video and even original programming. Netflix regained some lost ground, but it’s no longer a contender."

Netflix's troubles last year began when it decided to change its pricing plans. It abolished low-priced plans that combined receiving DVDs by mail with streaming video. It replaced them with separate plans for each, which resulted in a for some subscribers.

The move caused customers to desert Netflix in , and the company's stock to nearly halve in value—to $160 from $300—in three months.

Netflix made matters worse by announcing that it was spinning off its DVD-by-mail business as a separate entity called Qwikster. It quickly retreated from that idea and Qwikster in the bud.