Netflix could lose 10 million subscribers next year if it doesn’t cut prices, Needham analyst says

Finance

A button for launching the Netflix application is seen on a remote control in this photo illustration in Warsaw, Poland on April 25, 2019.

Jaap Arriens | NurPhoto | Getty Images

Netflix needs a cheaper streaming option to survive the streaming wars, according to Needham.

The firm said the streaming platform needs advertising dollars to supplement about half of Netflix’s current subscription cost.

“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 a service prices below its core $13/month service,” said Needham analyst Laura Martin in a note to clients on Friday.

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