Netflix Inc. is at risk of losing hundreds of thousands of customers as the price hikes it began in May extend to current subscribers through the rest of 2016.

The streaming service NFLX, -0.05% has seen its costs rise sharply as it invests more in original films and series while launching a global expansion. The company has to pull in cash from somewhere. Netflix is steadfast in its refusal to employ advertising and has tapped the credit markets. Analysts had long expected price increases.

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Now that it’s happening, Nomura analyst Anthony DiClemente expects Netflix could lose 480,000 subscribers in the U.S. Neftlix has 27 million subscribers in the U.S. The churn, or turnover rate, will be more than offset by the approximately $520 million a year in revenue Netflix gains from its remaining base, DiClemente wrote in a note to clients on Monday.

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The streaming giant recently raised the price of its standard subscription service to $9.99 from $8.99 for new members. Some existing subscribers have been grandfathered in and are still paying $7.99 for the standard high-definition service, which lets them watch on two screens simultaneously. As Netflix releases members from their grandfather clause, those subscribers will have to either pay $2 more for their standard service or opt for the lower-tiered offering at $7.99.

Netflix Chief Executive Reed Hastings has accepted the price hike will cause some customers to cancel the service, but he wasn’t worried about the impact when talking to investors and analysts during the company’s 2015 fourth-quarter earnings address earlier this year.

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DiClemente lowered his 12-month price target for Netflix to $115 from $125 on Monday. In the near-term he expects international subscriber growth to slow, facing tough comparisons due to the Japan launch during the third quarter and Southern Europe in the fourth quarter.

“Thematically, international net subscriber additions headwinds may be somewhat offset by a better narrative surrounding revenue benefits from price increases in the US throughout the remainder of 2016,” DiClemente wrote. “Longer term, we remain positive on Netflix, given our belief that the company will continue to accrue significant scale benefits as it further entrenches its position as the dominant global distributor of content.”