However, investors appeared spooked by the missed subscriber forecast, causing shares to fall by 14 percent to $345.63 in extended trading Monday.
It meant that Netflix, whose shares have more than doubled in value in the year to date amid a strong run for subscriber growth, was on course for the biggest drop in its market value in four years ahead of the stock exchange opening on Tuesday. CNBC explains that "domestic additions were only a little more than half of its projections, while it just added 4.5 million subscribers internationally".
With all this, the stock is tanking.
Netflix, which is up 108% this year, reported new 5.15 million subscribers, whereas it had projected 6.2 million and Wall Street anticipated 6.34 million, according to estimates.
Despite the subscriber miss, Netflix CEO Reed Hastings said the company's fundamentals have never been stronger.
Some investors have seen Netflix as the future of television-a sure-to-be dominant hub for all our entertainment viewing. Analysts were expecting 6.3 million - 1.2 million in the USA and 5.1 million internationally, according to Bloomberg.
As of June 30, Netflix had 130 million subscribers, including 57.4 million in the US.
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Netflix predicted it would add five million subscribers in the current quarter, which ends in September, slightly slower than the pace a year ago.
Revenue in the three months ended in June rose to $3.9 billion, yielding earnings per share of 88 cents.
Netflix has been investing a significant amount of cash in content creation and is expected to spend up to $8 billion this year on original programming. Revenue was up 6 percent to $3.9 billion.
Going forward, "We anticipate more competition from the combined AT&T/WarnerMedia, from the combined Fox/Disney or Fox/Comcast as well as from worldwide players like Germany's ProSieben and Salto in France", the company said in the investor letter. Disney is selling an internet version of its sports network ESPN and plans to introduce a general entertainment video service next year.
Netflix is expected to face increasing competition in the next year or two.
"Our strategy is to simply keep improving", Netflix said.
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