Netflix Vs. HBO Now Vs. Sling TV: Are They Competitive Or Complementary?

hit a new milestone this quarter when it announced that more than

now subscribe to the service. This record-breaking number includes 40 million members in the US alone. Netflix's success has attracted the attention of numerous competitors, including

, Hulu and HBO. The latter network introduced its long-awaited cable-free service, HBO Now, earlier this month. But is it a threat to Netflix, or is Netflix a threat to HBO? "I think these two services are complementary, not competitive," Needham analyst Laura Martin told Benzinga. "HBO is $15 a month for a narrow amount of universally, high-quality, current content like Game of Thrones." Martin said that Netflix differs in that it provides a "deep library and [is] much more about all-you-can-eat for $8 or $9 -- so much less expensive, half the cost." "So I would say these services are complementary, not substitutive," she said.

Now that Netflix has reached a new milestone, investors are bound to wonder: how much bigger can the service get? "I expect Netflix to double internationally over time, so another 20 million [subscribers] at least," Wedbush analyst Michael Pachter told Benzinga. Earlier today Netflix announced that it had renewed "Orange is the New Black" for a fourth season. This announcement came nearly two months before the third season premiered. "'Orange' is the best-rated show out of the Netflix originals, and clearly has a following," said Pachter, who wasn't surprised by the renewal. "It's likely that they renewed early because they had an option to do so. I wouldn't read much else into the timing."

Though it may offer live TV at a lower cost than cable, Martin doesn't think that Sling TV is a full solution for cord-cutters. "I definitely don't think it's a cord-cutting tool," she said. "The first and most important thing about Sling TV is it only has one login at a time. If your wife wants to watch Food Network, you can watch nothing until she's finished." Martin said that Sling TV is in no way "a cord-cutter's dream" unless the subscriber lives alone. "Cord-cutters, as you know, usually have kids and they're at different ages and they're using five screens at once," Martin continued. "Someone's on their phone, someone's on their tablet, someone's on the laptop and somebody's got the TV on, So I would say Sling TV is not substitutive with a cord-cutter. It is a stepping stone, I think, to these other over-the-top services for people who have nothing, either because they can't afford it or because there's nothing on TV they want to watch." If users are tempted to pay for more than one login, Martin suggested they get a cable bundle instead. "So the minute you start dating somebody seriously and you're going to cohabitate, you may as well get the $50 bundle 'cause you're going to spend $40 'cause each of you have to have your own ID," she said. Martin joked that consumers could make a schedule to designate when each household member can use Sling TV. But that is unlikely to work out well for consumers who are used to traditional pay-TV options. Disclosure: