For a company that spends billions of dollars on new programming, dealing with flops is part of the business. But when the flop is your business plan, well, that might hurt a little more.
The video streaming company reported earnings on Wednesday after the markets closed, and revealed that it only added 2.7 million paid subscribers internationally when it was expected to add 5.05 million.
U.S. subscriptions for the period were flat.
But the company isn’t deterred. It lifted its estimate of subscriber growth in the third quarter from 6.5 million to 7 million.
Investors, on the other hand, took a dim view, sending the stock down 10% after hours.
Interestingly, Netflix reported subscription growth slowed substantially in regions with price increases. That might give them pause about raising prices in the future.