Netflix had a solid start to 2016, reporting that it now has 81.5 million subscribers worldwide. But that wasn’t good enough for Wall Street.
The streaming giant, in reporting its first quarter earnings on Monday, also forecast that subscriber growth in the second quarter would be below industry expectations. That news sent Netflix shares down 11%.
Netflix added 2.23 million subscribers in the U.S. last quarter, and revenue was up 18% over last year. The company said that 42% of its subscribers are outside the United States.
The disappointing forecast for the next quarter looks to be due to a weaker than expected international subscriber projection in the second quarter.
The first quarter was helped by several series including “House of Cards,” “Fuller House,” and Marvel’s “Daredevil.”
Netflix also said that its implementation of a $2 price hike for its long-time subscribers will be rolled out “slowly over the year, rather than mostly in May” so that the company can “learn as we go.”
“We particularly don’t need the revenue in the short term, so it’s fine to just spread it out,” Netflix CEO Reed Hastings said during the company’s interview with analysts following the earnings report.