Specifically, Netflix is anticipating a net add of 5 million new subscribers for the September quarter, a tad below some analyst projections that saw Netflix bringing 6 million new subscribers on board.
The miss on subscribers for the second quarter "isn't entirely surprising", according to eMarketer principal analyst Paul Verna, as rivals including Amazon, Hulu, and HBO are gaining share of the subscription-video market at Netflix's expense.
In a letter to shareholders, Netflix blamed the shortfall to faulty internal projections of its subscriber growth, explaining that such guidance is often volatile. Earnings grew 32 percent from previous year to $384 million, or 85 cents per share.
The results broke Netflix's two-year streak of over-delivering on subscriber growth.
The shares plunged as much as 15 percent after Netflix added 5.2 million users in the period, about a million fewer than it predicted.
Bloomberg analyst Geetha Ranganathan was expecting the company would add about 5 million overseas customers during the quarter.
Although Netflix fell short with subscribers, its shows remain critical hits.
Still, Netflix ended Q2 with 130.1 million global subs, up 25% year over year, with 56 million in the USA and 72.8 million elsewhere.
"We had a strong but not stellar Q2", Netflix execs wrote in their quarterly letter to shareholders.
Revenue for the quarter came in at $3.91 billion, lower than the $3.94 billion analyst estimate. While most of the company's revenue growth comes from worldwide markets, the vast majority of its costs remain dollar-denominated. For the first time, Netflix generated more revenue outside the U.S.: global revenue totaled $1.92 billion and U.S. revenue was $1.89 billion for Q2.
But it also faces growing competition.
Apple, the world's most valuable company, is spending about $1bn on original programming for a video service of its own.
AT&T just bought Time Warner for $81 billion in a deal that includes HBO - a pay TV and video streaming service that AT&T plans to expand in an attempt to lure more viewers away from Netflix. "Our strategy is to simply keep improving, as we've been doing every year, " the company said.