Netflix said it expects to add 3.2 million new customers in Q2 and to have a total of 8.15 million net adds in the first half of the year - down from 8.42 million in H1 2016.
Previously the company had projected net gains of 1.5 million in the U.S. and 3.7 million internationally.
The stock fell 3.47 percent to $142.15, losing momentum after touching a record high in extended trade on Monday following its results, the first March-quarter report from a major USA technology company.
Indeed, Netflix's flagship series, "House of Cards", delayed the premiere of season 5 from the first quarter to the second quarter.
The massive subscriber growth is a testament to how much the video streaming service has changed the entertainment landscape since its debut ten years ago.
"We have a large market opportunity ahead of us", Netflix said.
Netflix growth was slower than expected in the first 3 months of this year. As for the competition, Netflix isn't phased by the advent of virtual MVPDs such as Sling, PlayStation Vue, DirecTV Now, YouTube TV, and Hulu's forthcoming service. Netflix concluded March with nearly 48 million users outside the U.S.
Netflix added 1.42 million domestic subscribers, slightly below guidance and consensus of 1.5 million, and directionally consistent with Baird's quarterly US survey which had suggested potential USA weakness.
Netflix, a company that has long concentrated on on-demand, commercial-free viewing, is going to continue its efforts in that area, rather than expanding in the direction of live, ad-supported programming. Netflix guided to Q2 revenue of $2.755 billion slightly above Baird's $2.72 billion estimate, with EPS of $0.15 below the firm's $0.21 estimate and consensus.
The streaming service had previously forecast an addition of 5.2 million subscribers worldwide in Q1 2017 to reach 99 million. Analysts found that Los Gatos earned $178 million on revenue of $2.6 billion in the first three months but Netflix will make $482 million on revenue of more than $11 billion for the entire year. Operating margin should dial back to approximately 4.4% because of a heavier production schedule; the full-year margin target remains at 7%. The company plans to spend more on original content this year and reduce outlays on licensed material such as movies.