It also predicts to add 5.0 million subscribers globally for the next quarter, compared to 5.3 million during the same period a year ago.
The Netflix logo is shown in this 2014 illustration photograph. The company relies on new seasons of its original content to draw in subscribers, and the distraction of the World Cup has also been put forward as a reason behind the disappointing results.
The news of just 5.2 million total subscriber adds was especially pointed for Wall Street given Netflix's addition of 7.4 million in the first quarter, well ahead of the 6.5 million projected then.
Analysts at MoffettNathanson said that Netflix's domination of its sector looked less durable than the other high-flying FAANG group of new media and internet companies. Its market valuation surpassed that of Walt Disney Co. this year, despite reporting less than a quarter of the revenue. That compares with consensus estimates for 1.2 million and 5.04 million, respectively. The company added 700,000 domestic subscribers during Q2, along with 4.5 million overseas, missing company and analyst estimates on both fronts. The company debuted its first Danish and first Indian dramas in the quarter, and it plans to release a new foreign-language program at least once a week next year.
Earnings per share came in at 85 cents, beating the 79 cents predicted by analysts surveyed by Thomson Reuters I/B/E/S.
We must keep attacking Kuldeep Yadav, says Eoin Morgan
In five series that have been locked at either 1-1 or 2-2 going into a deciding match, England have won three and lost two. But the hosts resurrected from the ashes to gain an 86 run win against the tourists in the second match at the Lord's.
In a research note, GBH Insights analyst Daniel Ives called the second-quarter showing "a near-term gut punch" to Netflix. The company will spend as much as $8 billion on programming this year. Marketing expenses surpassed $500 million in the quarter, almost double the amount spent a year ago.
Disney is also planning its own streaming service, which is expected to launch in 2019. Apple Inc is pouring money into original programming, signing up A-list names including Oprah Winfrey.
"Netflix is in a business that varies by quarter anyway and perhaps the company shouldn't have gotten too enamored with the insane success of the last two quarters, which was invigorating but not sustainable", Forrester analyst James McQuivey said.
"Our strategy is to simply keep improving", Hastings said in the letter to shareholders, "as we've been doing every year in the past". It had been the second-biggest gainer on the S&P 500 so far this year.