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Netflix (NFLX - Analyst Report) subscribers in the U.S. can now stream the first season of the comedy series, New Girl, produced by Twentieth Century Fox Television. The subsequent seasons will be available later.

Netflix has upped its efforts to stream new and diversified programs through multi-year licensing deals with big production houses, such as DreamWorks Animation SKG, Inc. (DWA - Snapshot Report). Moreover, it has included several original programs in its offerings such as Orange is the New Black and Hemlock Grove to name a few.

Additionally, Netflix’s another series, House of Cards, has received a metascore of 76 from Metacritic along with positive reviews from critics. It is worth noting that New Girl has a metascore of 66, apart from being highly rated by critics. Thus, Netflix’s decision to stream the series is expected to work in its favor.

Netflix’s growing offerings in the original-program series is expected to diversify its online content and help it stand out among other streaming content providers such as Amazon (AMZN - Analyst Report), HBO, Hulu and Comcast Corp (CMCSA - Analyst Report).

We believe that these initiatives will be incrementally beneficial for the company, going forward, helping it to add new subscribers while retaining the older ones. This is supported by Netflix’s first-quarter addition of 2.03 million and 1.02 million streaming subscribers in the domestic and international markets, respectively.

However, higher costs owing to international ventures and licensing fees and continued subscriber losses in its DVD business are the near-term headwinds. Loss incurred from the international business, due to higher content and marketing costs, is another concern in the short term.

Currently, Netflix has a Zacks Rank #3 (Hold).

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