Netflix (NASDAQ:NFLX) was trading lower in pre-market trading on Thursday after the online video service's latest results instalment disappointment.
Numbers released after the belle on Wednesday trailed expectations for profit, revenue and subscriber growth in the third quarter.
The company put the blame for the miss on a transition to chip-based cards.
Shares fell as much as 5.8% as of 8:36 a.m. in New York.
Los Gatos, California-based Netflix said late on Wednesday that it added 0.88mln U.S. subscribers in the July-to-September period, compared with its forecast of 1.15mln.
U.S. credit and debit card companies have been shifting to chip-enabled cards, designed to help prevent fraud, ahead of the October 1 deadline mandated for the switch.
That switch interrupted the payment system used by Netflix and its customers, leading to "involuntary churn," as chief executive officer Reed Hastings put it in a letter to shareholders, or “inability to collect” from customers who hadn’t updated their account information.
Netflix ended the quarter with 69.2mln total streaming subscribers, including 43.2mln in the U.S. and 26mln internationally.
Net income fell to US$29.4mln, or US$0.07 per share, for the September quarter, from US$59.3mln, or US$0.14 per share, a year earlier.
Analysts were looking for earnings of US$0.08 per share.
Third-quarter sales rose 23% to US$1.74bn, lagging behind projections of US$1.75bn.
Netflix hiked the subscription rate for new customers earlier this month by US$1.00 a month to US$9.99 in the United States, Canada and Latin America.