Netflix looks to India and beyond after first drop in US subscribers.

Streaming giant bets on new content and cheaper plans to win users.

PALO ALTO, U.S. -- Netflix's first ever drop in U.S. subscribers has the streaming giant pinning its hopes for growth on India and other international markets.

On Wednesday, the company reported disappointing second-quarter earnings, as well as a loss of nearly 130,000 paid subscribers in its home market. Netflix had projected in the first quarter that it would gain more than 350,000 U.S. subscribers in the three months through June.

Netflix blamed the drop on a lack of fresh content and a price hike in the U.S. earlier this year. The company's shares plunged more than 10% in the after-hours trading session Wednesday.

Globally, Netflix reported a net addition of 2.7 million subscribers over the past quarter, well below the 5 million it had forecast in earlier in the year.

In the earnings call on Wednesday, Netflix said its international operations are poised for strong growth. 

By Yifan Yu.

Full story at Asia Nikkei.