Netflix (NFLX) has created a "virtually insurmountable lead" in the streaming wars and will now focus on revenue growth, Wedbush said in a note Friday.
The company, which raised prices across its subscription tiers in Q1, will no longer report subscriber additions and revenue per member metrics, analysts led by Alicia Reese said.
The video on-demand streaming service provider is positioned to speed up ad tier revenue contribution over the next several years by adding more live events, enhancing its advertising services and targeting, and broadening its content strategy, the analysts said.
"While massive subscriber growth was the primary driver in 2024, we expect price increases to drive revenue growth in 2025, and the ad tier to drive revenue higher in 2026," the note said.
Wedbush maintained an outperform rating on Netflix with a $1,150 price target.
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