They are losing subscribers in the us and europe because of competition recession inflation and general fears about the economy said michael pachter an analyst from wedbush securities. Netflix will continue to grow as people cut cable cords and offer a cheaper ad-supported option he said. Pachter doesn’t see this as a huge problem for Netflix, however, as the company is not dependent on subscriber numbers to make money. “The bigger problem for Netflix is that they are not a good business model, they are a high-cost, low-margin business model. Once you get past the $8 or $9 level, their margins are going to go down. Netflix has to raise prices and keep raising prices to keep the margins up. The problem is that their content costs are going up, so they are going to have to raise prices even more.”
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