Netflix shares fall 15% on growth worries Netflix shares fell more than 15 per cent in after-hours trading amid fears about the pace of subscriber growth at the video streaming and DVD subscription group. The company, which recently launched in the UK, hit earnings estimates for the quarter and promised to add 7m subscribers in its core US market by the end of its fiscal year. With 1.7m US subscribers added in the first quarter and about 600,000 forecast for the second, analysts expressed concerns that the company could deliver 4.5m more in the second half of the year. "They're being unrealistic about the second half," said Michael Pachter, an analyst with Wedbush Securities. Reed Hastings, Netflix chief executive, said in his letter to shareholders that there would be more "quarterly seasonality [in 2012]" because the company was starting with a larger number of subscribers. "Our gross additions are consistent with historic patterns," he told an investor call. We feel very good about the year. But investors did not share his confidence and embarked on a sell-off that had echoes of last year when a botched rebranding and separation of Netflix's DVD and streaming business hit shares. Netflix has steadied the ship since then and hit its targets in the first quarter. Revenue for the three months to March 31 was $870m compared with $718.6m in the same period in 2011. Losses were $4.6m, compared with a profit last time of $60.2m. The group expects to return to profitability in 2012 and said it would resume international expansion plans. Its next market is expected to be Spain, joining Latin America, Canada and the UK. While the UK launch has gone well Netflix conceded it needed to do more work in Latin America to drive "consumer understanding" of its service. Mr Hastings said there were "unique infrastructure challenges" in the region. "The odds of us building a large, profitable business in Latin America are very good, but it will take longer than we initially thought," he wrote in his investor letter. Netflix has bet heavily on the UK, which has led its international growth. "From the start, we achieved the highest net additions we've ever seen in the first 90 days of an international market launch," wrote Mr Hastings. The company plans to bulk up the content available to UK subscribers by bidding for more exclusive film and television rights. The UK pay television rights to the six Hollywood studios are currently owned by British Sky Broadcasting's Sky movies channel although the company plans to bid for one of these studio deals if one becomes available. The shares fell 4 per cent to $101.84 at the close and were off an additional 15 per cent after hours.