Standard & Poor's Equity Research downgraded shares of Netflix (nasdaq: NFLX - news - people ) after the online movie rental firm reported fourth-quarter earnings "that essentially met targets." The research firm lowered target price to $10 from $12 and widened the 2005 net loss estimate to 18 cents per share from 10 cents per share. But Blockbuster (nyse: BBI - news - people ) could keep up a battle for customers. "We think a lower churn rate of 4.4% might have given investors what we see as a false sense of confidence with regard to the impact of Blockbuster's aggressive pricing actions taken in the fourth quarter," it said. "We see an increased likelihood that a price war will continue in 2005, further eroding industry profitability."