Dec 11 Moody's Investors Service on Tuesday
downgraded the debt rating for video rental service Netflix Inc
, citing the company's shift away from higher-margin
DVDs and toward streaming of TV shows and films over the
"The downgrade reflects the higher risk surrounding the
company's shift to a fixed cost streaming business model which
requires much higher subscriber levels to reach profitability,
combined with an increasingly competitive operating
environment," Moody's said in a statement.
Moody's downgraded Netflix's corporate family rating to Ba3
from Ba2 and the probability of default rating to Ba2 from Ba1.
Senior unsecured notes were downgraded to Ba3 from Ba2. The
rating outlook is stable, Moody's said.