Some binge watchers didn't want to pay extra to stay on Netflix after the streaming video company jacked up prices in May. As a result, Netflix Wednesday reported that it lost 130,000 customers in the U.S. in the second quarter. That wasn't all the bad news. Internationally it added 2.8 million new subscribers, missing Wall Street's target of 4.8 million.
That pushed shares down about 13 percent in after hours trading.
Reuters reporter Lisa Richwine.
"This is a tough quarter for Netflix. Wall Street is used to them adding subscribers, growing like crazy every quarter. The challenge going forward is there is a lot of competition coming. Disney plus is coming to the market, a streaming service with a ton of great brands and content behind it. A bunch of other companies have things coming later this year or next year. So that competition hasn't even hit yet. And Netflix has shown a blip in their fast paced growth."
And that competition is already clawing away rights to popular shows like Friends and The Office from Netflix.
But Netflix said it expects to sign up 7 million new users in the third quarter with several top shows like "Stranger Things" and "Orange is the New Black" launching new seasons.