Netflix, Inc (Nasdaq: NFLX) could see its share price drop by 50% from $106 to $55, according to analysts at Janney Capital Markets. In their view, Netflix is facing challenges in both its video streaming and DVD business. One of these challenges is the cannibalization of the high margin DVD business by the lower margin streaming services. Increase competition and billing issues are also likely to be a drag on the share price.

Considering Internet tracking data and improved results posted by competitors such as Coinstar, Janney analysts had this to say. "Any one of these data points could be dismissed as benign anomalies but the collective of these items should warrant more caution going into earnings."

Netflix will be reporting earnings on Monday, April 23rd.