Netflix Inc.’s stock slid nearly 6 percent Monday amid the latest round of investor concerns about the video subscription service’s ability to make money and retain customers as it grapples with higher licensing costs and tougher completion.
Macquarie Securities analysts Tim Nollen and James Kopelman highlighted the challenges facing Netflix in a 35-page report that provides a glum assessment of the company’s long-term prospects. The analysts asserted that Netflix’s profit margins may never return to their peak levels, largely because TV and movie studios are demanding higher fees to license their content at a time when the company’s subscriber growth has been slowing.