(Reuters) — Netflix missed Wall Street subscriber forecasts for the first quarter Tuesday, amid pressure from lower-cost services from Walt Disney and Apple in the streaming video wars. The streaming giant added more paying subscribers than Wall Street expected in the fourth quarter, beating international subscriber estimates but missing estimates for U.S. subscriber growth. Netflix shares were up 1.5% in volatile after-hours trading on Tuesday.
The company acknowledged that competitive pressure and a recent price hike impacted its U.S. business, where subscriber growth fell short of analyst estimates. Competition had a more muted impact on its viewership in Canada, Australia, and the Netherlands, the company wrote in a letter to investors.
The and streaming services both launched in the United States in November. Disney+, which