UPDATE: Wedbush Downgrades Netflix to Underperform, $45 PT

Wedbush Securities has published a research report on Netflix NFLX and has downgraded the company from Neutral to Underperform. In the report, Wedbush writes, "In our view, the company's business model was broken when it raised prices for its hybrid customers, and continued customer defections will require it to invest ever increasing amounts on marketing. We estimate that Netflix will spend $800 million on streaming content in 2011, and expect streaming content costs to rise to at least $1.7 billion in 2012, partially offset by approximately $200 million in DVD and postage savings." Wedbush maintains its $45 price target on Netflix, which closed yesterday at $67.57.