Netflix

I liked the company as a DVD rental business.  Now, it is trying to become HBO on the internet, and that seems tough.  Especially with all the competition:  Showtime, HBO, FX, AMC, and even NBC to some degree.  They must compete with all these other outlets who have been doing it for longer.  What advantage does Netflix have?  I suppose the streaming technology -- but is that really much of an advantage?  I just don't see their edge anywhere.  Nor do I see "high quality" TV as a particularly underrepresented product.  What makes Netflix think they can produce better shows than the other channels?