Piper doesn't see Netflix losing many subscribers over price increase
After surveying 1,500 U.S. Netflix (NFLX) subscribers, research firm Piper Jaffray does not believe that the company's subscriber base will drop significantly following an upcoming price increase. SURVEY SAYS: Piper Jaffray analyst Michael Olson noted that a significant number of Netflix subscribers who had been grandfathered from a previous price increase to $9.99 per month will have to begin paying the higher fee later this year or drop the service. Piper Jaffray's survey indicated that only 3%-4% of Netflix's U.S. subscribers will abandon the service due to the price increase, Olson reported. Additionally, the survey suggested that Netflix could raise its U.S. prices further, the analyst stated. According to Olson, 55% of the customers surveyed said that they would not drop the service unless the price was increased to more than $15 per month. The analyst kept a $122 price target and Overweight rating on the shares. BEARISH VIEWS: On July 5, research firm Needham downgraded Netflix to Hold from Buy. According to the firm, Brexit could cause the growth of the company's European subscriber base to slow or increase its European churn rates. Also downgrading Netflix last week was Jefferies, which lowered its rating on the shares to Underperform from Hold. Netflix's domestic subscriber growth trajectory "may be somewhat flatter" than the market's current expectations, the firm stated. Barron's warned last weekend that it's "easy to imagine" Netflix's stock plunging 40% or more. As streaming has become "the new normal," Netflix has become less exciting and the momentum of its stock has stalled, Barron's contended. PRICE ACTION: In late morning trading, Netflix rose 1.7% to $96.28 per share
News 
Market Data 
Discover 
