Is Netflix About to Lose 10 Million Subscribers?

We're ankle deep into what could wind up being the two scariest months for Netflix (NASDAQ: NFLX) investors. Between its critical third-quarter earnings report in two weeks and the launch of new Apple (NASDAQ: AAPL) and Disney (NYSE: DIS) streaming video services next month there are a lot of things that can go wrong for the premium streaming leader. One Wall Street pro seems to think that the fallout could be severe unless Netflix tweaks its prices.

Needham analyst Laura Martin feels that Netflix could shed as many as 10 million of its 60.1 million U.S. subscribers at its current monthly rates. With a year of Apple+ being bundled into new-device purchases at no additional cost and Disney recently selling three-year prepaid plans to Disney+ for roughly $4 a month, it's going to be difficult to stand out with its standard plan's monthly pricing of $12.99. Netflix seems out of touch, especially if the economy sours and consumers brace for a recession. This could be a lose-lose situation for Netflix, but it pays not to underestimate what CEO Reed Hastings can do.

Image source: Netflix.

Source Fool.com