Despite latest price hike, one analyst remains Netflix bullish

On-demand video streaming rivals Netflix and Amazon both debuted new shows today. Amazon released "The Man in the High Castle" while Netflix launched the Marvel Comics series "Jessica Jones."

But new customers who want to tune in to the new programming will be paying $1 more than current Netflix users.

Despite the price hike to $9.99 per month for new customers, one analyst remains very bullish on the stock.

Mark Mahaney, lead Internet analyst at RBC Capital Markets said investors should not be worried about the impact of the price increase on international markets.

He told CNBC's "Squawk Alley" that within a year Netflix has become the No. 2 subscription video-on-demand player in large broadband markets like France and Germany. Moreover the streaming service holds more than a 10 percent share of households in those markets.

On Friday, Mahaney said he agrees that there could be risks associated with the price increase but actually a much larger percentage of subscribers are not bothered by the price increase than are.

"So if the U.S. market shows a price rise, increase tolerance in the U.S., chances are we'll see that in international markets too, but that's still to be determined," he said.

On the other hand, Mahaney said he does worry about whether the market is reaching a peak sentiment on Amazon. However, he thinks the Netflix competitor's story has gotten "materially stronger" over the past year.

"You're seeing accelerating revenue growth in that retail business and this [Amazon Web Services] business has really caught the market, almost all investors, by surprise," he said.

Mahaney added, "We think Amazon's momentum is sustainable. This is not a one- or two-quarter phenomenon. This is a couple of years that will play out that's not yet reflected in the stock price."