Netflix shares under pressure following massive miss on new subscriber growth

Netflix revealed after the closing bell that it had added 2.7m new paid subscribers in the second quarter of its trading year, well and truly short of the 5.3m expected on the Street.

The video streaming giant cited price increases and a lack of fresh content throughout the quarter for the big miss.

"We don't believe competition was a factor since there wasn't a material change in the competitive landscape during Q2, and competitive intensity and our penetration is varied across regions," said Netflix.

"Rather, we think Q2’s content slate drove less growth in paid net adds than we anticipated."

On the earnings side of things, Netflix turned in second-quarter earnings of $0.60 per share, compared with the $0.85 a share recorded a year earlier.

Revenues grew to $4.92bn from $3.9bn, just ahead of the $4.9bn expected by analysts.

As of 2135 BST, Netflix shares had dropped 10.34% in extended trading to $324.96 each.