Netflix suffers as key content deal lapses and competition ramps up
Netflix’s share price has suffered a sharp decline in recent days as market watchers prepare to see the impact of it losing a key programming deal and following a downgrade from investment bank Raymond James.
The content streaming and delivery company’s deal with Starz for TV series and movies lapses this week just as the competitive environment is heating up domestically and internationally where it operates a UK and a Latin American service.
The US-listed company’s stock has fallen from over US$126 (€94) per share five days ago to US$109 per share at the close of play yesterday.
Raymond James cut its rating on Netflix yesterday citing growing competition, higher content costs and low margins on the streaming side of the business. It added that in its view, Netflix might have already tapped half of its addressable market in the US.