Netflix Inc shares fell 5% on Friday after Goldman Sachs downgraded the streaming giant, which is facing a slowdown in consumer spending and tough competition from Amazon.com and Walt Disney Co.

The streaming pioneer in April lost subscribers for the first time in more than a decade in a sign of troubled times ahead for the industry as rising prices of food and gas left people with little to spend on entertainment.

Suspending its services in Russia after the Ukraine invasion also took a toll on Netflix.

Goldman downgraded the stock to “sell” from “neutral” and slashed its price target to $186 from $265, the lowest PT among analysts covering the stock, according to data from Refinitiv.

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“The cost of living crisis will have a major impact on all streaming services. Lets not forget the market is now awash with too many streaming media services chasing too few services,” said Paolo Pescatore, an analyst at PP Foresight.

“Expect to see high levels of churn given the very nature of how streaming services are marketed and sold. Therefore, expect some to pivot more towards a yearly discounted bundle to entice users and increase loyalty.”

Netflix is already considering a cheaper subscription that includes advertising, following the success of similar offerings from rivals HBO Max and Disney+.

Of 48 equity analysts covering Netflix, 12 rate the stock “buy” or higher, 31 “hold” and five recommend “sell” or “strong sell”. Their median price target on the stock is $297.50.