"I like subscription revenues, and I enjoy using the product, and it's part of the content and distribution that I look at," the CEO of GAMCO Investors said. "I did increase my percentage by almost 50 percent."
Gabelli said he does not necessarily view Netflix as a hedge against accelerating cord cutting. The company needs the cable providers to provide infrastructure, he noted.
"You need speed to deliver your content and the ... policies in the United States have been tilted toward helping the Internet," he said. "Netflix is just part of whatever I'm going to have."
Gabelli said he also likes CBS, saying, "The CEO has done a fantastic job, it's got great cash, and there's a good tail wind, and it's materially undervalued."
Looking at the broader market, Gabelli said energy price weakness will continue to dog the United States until Saudi Arabia blinks or demand rises, but investors can expect some headwinds to taper off.
"You're going to see the pluses come in in 2016 that you haven't seen, and that is the end of the impact of the currency dynamic in terms of impacting earnings," he told
The United States' leadership has also been "AWOL," Gabelli said, but that should change after the presidential election.
For 2015, Gabelli said nothing has shifted in his thinking about where the S&P 500 will end the year. He still sees gains of 0 to 5 percent.