More than two-thirds of Netflix's business will be international in 15 years, and that could be a good thing, one analyst said.
The entertainment technology company has created an "unstoppable lead" in the internet TV business, Brean Capital analyst Alan Gould wrote in a Monday research note, initiating his coverage of Netflix with a "buy" rating.
"In the long term, I think international will have the same profit margin as they've had domestically," Gould told CNBC's "Fast Money: Halftime Report" on Monday.
In a decade, Gould expects Netflix to hit 250 million subscribers, with 170 million based outside the U.S. In 15 years, Gould expects that to grow to 300 million global subscribers, paying about $20 per month, he wrote.
To be sure, Netflix faces increasing competition from companies like Amazon, which has announced ambitious plans to expand its spending on video content. Long term, Netflix will may also have to contend with the availability of broadband, and changing regulations, Gould wrote.
"The concern would be what happens in some of the markets where you have endemic programming, something like Japan," Gould told CNBC. "Or India, where the [average revenue per user] is $2 to $3 currently — you have all the Bollywood programming."
Disclosure: Brean Capital intends to seek compensation for investment banking or non-investment banking services from the companies in its coverage universe.