Netflix (NFLX)

Increased competition in the online media and video rental markets could provide slower growth for Netflix in the future.

Increased costs in obtaining new streaming content and renewing existing streaming content could be detrimental to Netflix's margins.

Incredibly, Netflix counts purchase of inventory, which it calls "Acquisition of DVD content library," as an investing(!) cash outflow rather than an operating outflow.

For 2010, this makes free cash flow appear to be $123.9 million higher than it would if it classified its purchase of inventory correctly.

CBS Corporation and Netflix, Inc. announced a two-year, non-exclusive licensing agreement that will allow select TV shows from CBS's library, including episodes of "Medium" and "Flashpoint" as well as full seasons of classics such as "Frasier," and "Cheers," to be streamed instantly from Netflix. CBS retains an option to extend the agreement for up to two additional years. Terms of the deal were not disclosed.

New technological developments could hurt Netflix's business model if offering such products proves to be more expensive or even unprofitable.

Intellectual property rights and violations could be detrimental to Netflix's earnings. If such laws and regulations are not strongly enforced Netflix could see serious effects.