It's been a busy few months in the world of streaming. Not only has Netflix continued to push out mass amounts of content, but they've also begun to feel intense pressure from the launch of other streaming platforms. Because of this new competition, Netflix's subscriber count is set to drop in 2020.
Earlier today, Wall Street brokerage Needham and Co cut its rating for Netflix Inc, making it the fourth brokerage to do so in the last two months. According to Needham, newfound competition could cause Netflix to lose as many as four million subscribers next year.
Laura Martin, an analyst at Needham, believes that a lower-priced service is the best option for Netflix if they want to compete with these new streaming platforms.
To put things into perspective, a Netflix subscription starts at $9.99 in Canada and can cost you as much as $16.99 for a more advanced plan.
A Disney+ subscription costs a standard $8.99/month, and an Apple TV+ subscription will set you back just $5.99/month, so you can see why Netflix is becoming less appealing.
Despite the decline in brokerage support, Netflix still managed to earn an impressive 34 nominations for the upcoming Golden Globe Awards, with 17 movie nominations and 17 TV nominations.
As of September 30, 2019, Netflix had 60.62 million paid subscribers in the U.S. alone, which accounts for a third of its overall subscriber base.
Even though its shares have fallen 2.6% this year, a majority of brokerages are still rating Netflix stock at "buy" or higher, so the streaming service appears to be safe — for now, anyway.