HomeMediaMagazine reports that Industry Analyst Michael Pachter from Wedbush Morgan thinks the Warner Deal will hurt Netflix:
“The new release window may erode Netflix’s market share in favor of Redbox in the future, as the latter can secure new titles through retail workarounds,” Pachter said in a Jan. 25 note.
The analyst said he projects Netflix’s revenue growth to fall below 20% over the next several years, with downward pressure on average revenue per subscriber as increasing numbers of members join just for streaming and not DVD/Blu-ray Disc rentals.
Pachter, who maintains an “underperform” rating on Netflix shares, still expects the service’s recent consumer electronics partnerships to drive 750,000 new annual subscribers.
MovieMiguel.com
