Netflix shares have dropped 15 percent in after-hours trading Wednesday on news that the company added fewer subscribers and generated less revenue than expected in the third quarter.
For the quarter that ended Sept. 30, Netflix had 69.17 million reported streaming subscriptions — an addition of 2.74 million international subscribers, but only 880,000 U.S. subscribers. The company had expected to add 1.15 million domestic subscribers in the quarter.
In their letter to shareholders, CEO Reed Hastings and CFO David Wells wrote: “While global growth was as we expected, our forecast was high for the US and low for international.”
Financials came in slightly below Wall Street expectations, with Netflix reporting $1.74 billion in revenue. Analysts at Thomson Reuters had expected $1.75 billion.
Netflix announced last week that it would increase the price of its standard streaming plan from $8.99 to $9.99. The move came on the heels of competitor Hulu’s introduction of a commercial-free streaming subscription for $11.99 per month.