Netflix Must Add Ads or Lose Millions of Users, Needham Says
- Firm downgrades on risk users may move to lower-cost rivals
- Shares drop and extend recent stretch of underperformance
A selection of Netflix original content.
Photographer: Bloomberg/BloombergThis article is for subscribers only.
Netflix Inc. was downgraded to the equivalent of a sell at Needham, which reiterated its view that the video-streaming company was at risk of losing millions of U.S. customers in 2020 given rising competition, including from low-cost rivals.
The company “must add a second, lower priced, service to compete with Disney+, Apple+, Hulu, CBS All Access and Peacock,” analyst Laura Martin wrote to clients, who forecast 4 million U.S. subscriber losses next year if the company doesn’t make changes.