Netflix is now available in most countries around the world, putting more pressure on the firm to continue its fast-paced growth abroad as well as at home.
Netflix on Monday announced that it expected to add just 2 million subscribers outside the US in the second quarter this year — less than the 3.5 million analysts had expected.
The figure also represents a decrease from the 2.4 million subscribers the streaming service added outside the US in the same period the previous year.
Netflix attributed the lower international forecast to a tough comparison with the previous year, when it started the service in Australia and New Zealand.
Netflix also said that it expected to add just 500,000 members in the US during the second quarter of this year because of what it described as a “modest impact” from price increases.
While Netflix characterized the forecast as “in line” with previous years — it added 900,000 subscribers in the US during the same period last year— the news sent shares down more than 10 percent in after-hours trading.
The development came on what already was a rough start to the week for Netflix. Amazon on Sunday evening created a more direct competitor to Netflix with the introduction of a new US$9 monthly subscription for its Prime movie and television streaming service.
That uncertainty over the competitive landscape as well as fears about growth prospects, both in the US and around the world, put a cloud over the generally positive first-quarter financial results that Netflix announced on Monday.
The firm beat expectations for profit and revenue growth during the first quarter, after announcing in January that it was adding 130 countries to its service map.
First-quarter profits totaled US$28 million, up 16 percent from the same period last year, and total revenue increased 24 percent to nearly US$2 billion.
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