Netflix (NFLX) Could Lose A Lot Of Members Soon

Netflix could be saying goodbye to many subscribers as the price hikes it first bega back in May will be extending to current subscribers throughout the rest of the year.

Analyst Anthony DiClemente from Nomura, expects Netflix could lose 480,000 subscribers in the U.S. This is out of the 27 million subscribers the company has.

DiClemente wrote in a note to clients on Monday that the churn, or turnover rate, will be more than offset by the approximately $520 million a year in revenue Netflix gains from its remaining base. DiClemente lowered his 12-month price target for Netflix to $115 from $125.

The streaming video company has raised the price of its standard subscription service to $9.99 from $8.99 for new members. Many grandfather members who currently pay $7.99 for standard high-definition service, which lets them watch on two screens simultaneously, will be released from this clause. They will now have to either pay $2 more for their standard service or opt for the lower-tiered offering at $7.99.

Disclaimer: We have no position in Netflix, Inc. (NASDAQ: NFLX) and have not been compensated for this article.