Netflix could lose 4 million U.S. subscribers in 2020 amid the proliferation of new streaming services that offer cheaper plans, this analyst says.
Netflix Inc. historically has been averse to advertisements, but the changing competitive landscape in streaming likely warrants a change in strategy, according to an analyst.
While the thought of ads on Netflix may spook fans of the service who have grown accustomed to binge-watching content uninterrupted, Martin’s scenario calls for an ad tier as just one option that Netflix subscribers could purchase, alongside the traditional ad-free tiers. Adding six to eight minutes of commercials per hour could allow the company to price this option at $5 to $7 a month, in line with cheaper offerings from Walt Disney Co. DIS, -0.08%, Apple Inc. AAPL, +0.
The analyst is skeptical that growth in the international subscriber base will be able to support Netflix’s stock if the U.S. subscriber pool shrinks, since U.S. customers are about three times more profitable, by her estimations. In addition, international growth “is increasingly coming from $3/month mobile only subs, so it takes four of these subs to offset revenue lost from a single U.S. sub.”
México Últimas Noticias, México Titulares
Similar News:También puedes leer noticias similares a ésta que hemos recopilado de otras fuentes de noticias.
Netflix slides after an analyst says it could lose 4 million subscribers in 2020If Netflix doesn't introduce a lower-priced option in the US next year, Needham says the stock 'starts to become attractive around $260 per share.'
Leer más »
Netflix downgraded by a top analyst, who predicts big subscriber losses next yearNeedham downgraded Netflix to underperform and said the company is
Leer más »
Netflix could lose four million U.S. subscribers in 2020: brokerageNeedham and Co was the fourth Wall Street brokerage in two months to cut its rat...
Leer más »
More than 26 million Netflix subscribers viewed 'The Irishman' in seven days, chief content officer saysNetflix counts a view for 'The Irishman' as a subscriber who watched at least 70% of the movie.
Leer más »
Next Oil Rally May Be Made in Texas, Not ViennaOPEC met in Vienna last week, attempting to bolster oil prices and the Saudi Aramco IPO. But, as Spencerjakab explains, the next oil rally may actually take place at the hands of U.S. shale producers. WSJWhatsNow
Leer más »
Attorney General William Barr says Big Tech probes to be completed next yearU.S. Attorney General William Barr said on Tuesday that he hoped to have Justice Department investigations of the big tech platforms completed next year.
Leer más »