Netflix said it expects to add 5 million paid subscribers in the second quarter, an 8% decline from a year earlier, with 300,000 new subscribers in the U.S. and 4.7 million new subscribers internationally. Analysts were calling for 5.5 million paid new subscribers. In addition, Netflix said its expects revenue in the quarter of $4.93 billion, slightly below consensus, while earnings were forecast at 55 cents a share, well below expectations of 99 cents.
The company said it expects to see "some modest short-term churn effect as members consent" to the company's recently announced price changes. While U.S. net adds were seemingly unaffected by the change, the international market may be less forgiving.
To combat this, the company said it was "looking forward to a strong slate of global content in the second half of the year."