The Wall Street brokerage Needham and Co are the latest to cut it’s rating for Netflix Inc. Per Reuters, the company argues that new streaming services could lead to Netflix losing four million premium U.S subscribers next year.
Laura Martin, the Needham analyst who gave the downgrade, believes, “Netflix will have to add a lower priced service to compete with competitors including Apple Inc’s Apple TV+ service and Walt Disney Co’s Disney+.”
Martin adds that because Netflix refuses to advertise on their platform, it’s keeping their prices high, which in turn is hurting them. Especially when they’ve lost shows like The Office and Friends. “Netflix’s premium price tier of $9 to 16 per month is unsustainable.”
Laura Martin is the sixth analyst to rate Netflix’s stock low. According to Reuters, “A majority of brokerages still rate the stock at ‘buy’ or higher.”