According to Needham’s Laura Martin, who has a hold rating on the stock, Netflix could lose 10m subscribers next year except they adopt a cheaper option to survive the raging streaming war currently going on.
The firm said that Netflix needs top advertising dollars to make up for about half of Netflix’s subscription costs.
“NFLX’s price point is too high given the competitive streaming landscape. We project NFLX will lose 10mm US subs during 2020 unless it offers service prices below its core $13/month service,” Laura Martin said on Friday.
News Source: CNBC
Photo Credit: GRM Daily