Competition from new streaming services could lead to a significant loss of premium subscribers next year, Wall Street brokerage Needham warns.
Needham and Co was the fourth Wall Street brokerage in two months to cut its rating for Netflix on Tuesday, arguing competition from new streaming services could lead to the loss of 4 million premium US subscribers next year.
Netflix's video streaming push has seen subscriber numbers dwarf those of rival services at the cost of huge investment in both regional and international content on its platform.The streaming service had 60.62 million paid subscribers in the United States as of its latest quarter ended September 30, accounting for over a third of its global subscriber base.The approach comes at the cost of a rising debt pile, which stood at $US12.
"Netflix's premium price tier of $US9 to $US16 per month is unsustainable," Martin said, adding that the loss of popular TV shows such as "Friends" and 'The Office' to its competitors could hit the company's value over time.
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