Netflix added 1.53 million new domestic subscribers compared to forecasts of 1.5 million. Analysts had expected 7.5 million new subscribers while Netflix itself had forecast 7.6 million.
Expectations were high for the company heading into the holiday quarter report. Despite the dip, shares are up almost 50 percent from a recent bottom in December, though they remain down about 18 percent from their record closing level.
In Thursday's extended session, Netflix shares dropped 3.8% to $339.70.
In a statement to The Associated Press, Pond 5 said the footage "was taken out of context" and the company wanted to "sincerely apologize".
The results were announced two days after Netflix revealed plans to raise the price of a monthly subscription for U.S. consumer by $1-$2 per month, depending on the plan they are on.
The firm said it will also look to adjust prices elsewhere as currencies fluctuate, but warned the increases could lag behind the exchange rate shifts, causing revenue hiccoughs.
Netflix reported revenue of $4.19 billion for the quarter that ended in December, slightly below the $4.21 billion that Wall Street analysts had forecast, according to IBES data from Refinitiv. Netflix shares eased about 4% in trading Thursday, after the regular close of USA stock markets.
Raises price target to $450 from $420 "to reflect faster subscriber growth, particularly in worldwide markets". AT&T's WarnerMedia unit plans a broader streaming service this year centered on HBO. That's in addition to rival services on the market from Amazon, Hulu and Google's YouTube.
While Netflix has said the footage will stay in Bird Box, it is being removed from Travelers.
But the company fell short of Wall Street's subscriber estimates sending its stock diving nearly 4% in after-hours trading on Thursday.
But there may still be room to grow.
Television viewers in the United States also spend an estimated 10% of their time on Netflix, they claimed. "We don't get so focused on any one competitor and really think our best way is to win more time by having the best experiences". Netflix also raised prices in Canada, Japan and Argentina in late 2018.
Nothing in Thursday's numbers will convince Netflix believers that the company is doomed, nor will anything convince Netflix doubters that its path is smooth. The company estimated that 80 million households will have watched the movie starring Sandra Bullock in its first four weeks, sparking a viral reaction online.
Ted Sarandos, Netflix's chief content officer, talked in an investor interview following the release of results.
Streaming services took off because people were exhausted of paying outrageously high prices for cable packages they only used part of and for the occasional night at the movies.
"Judging by recent moves, the rest of the media industry is more than happy to sell Netflix whatever they want as long as the bid is high enough and the check clears", MoffettNathanson analysts said. "You're watching the programming that the rest of the world is loving at the same time".