Netflix faces difficulties on multiple fronts, including subscriber defections over rate hikes, the cost of building up service in Canada and Latin America, and the loss of Starz content in 2012, giving rivals the opportunity to start similar video services, Martin Peers writes. "If media executives were smart, they'd seize this opportunity and find their own way to offer a lower-priced alternative, snuffing out Netflix's main appeal. Otherwise Netflix could come roaring back," he writes.

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