Netflix shares plunged by 11.9 percent to 319.29 U.S. dollars in after-hours trade Wednesday after its quarterly update showed weaker-than-expected subscriber growth for the streaming television sector's leader.

Netflix said it added 2.7 million new subscribers worldwide in the April-June period, well below expectations, as the sector prepared for offerings from rival groups including Walt Disney, Apple and others.

Netflix said in a letter to investors that it still sees long-term growth on target, dismissing concerns that consumers were gravitating to rivals.

"We don't believe competition was a factor since there wasn't a material change in the competitive landscape during the second quarter, and competitive intensity and our penetration is varied across regions," the letter said.

Netflix, known for its original shows such as "The Crown" and "Orange is the New Black," said the latest shows did not attract as many new subscribers.

"We think the second quarter's content slate drove less growth in paid net adds than we anticipated," the company said.

Netflix said revenue for the quarter grew 26 percent from a year ago to 4.9 billion U.S. dollars and profit fell 29 percent at 271 million dollars.

A slight decline in the number of U.S. subscribers indicated some people dropped the service due to a rise in price, according to eMarketer forecasting analyst Eric Haggstrom.

"Netflix has a difficult road ahead with looming competition and the removal of popular content, but a strong content schedule in Q3 should draw many former subscribers back in," Haggstrom said.

Earlier this month, WarnerMedia announced that the hugely popular television sitcom "Friends" will move from Netflix to HBO Max, a new streaming service which the company will launch in 2020.

The new service will enter an increasingly crowded TV streaming marketplace, vying for customers with Netflix, Hulu and Amazon as well as the soon-to-be-launched Disney+, and Apple's upcoming product.

"Friends," though ended in 2004, remains one of Netflix’s most-watched shows, and the company once said that the company paid 100 million U.S. dollars every year to extend the streaming rights.

However, Netflix said that they will make up for the loss of "Friends" with original content.

"Much of our domestic, and eventually global, Disney catalog, as well as 'Friends,' 'The Office,' and some other licensed content will wind down over the coming years, freeing up budget for more original content," the company said.

Netflix said in an earnings letter to shareholders that it has no plans to add advertising to its streaming television service. The company planned to continue to invest in original content to keep and win subscribers.

Meanwhile, Netflix has also been expanding to video games based on its hit original shows such as "Stranger Things."

A "Stranger Things 3" video game tailored for PlayStation, Switch, and Xbox consoles as well as personal computers was released on July 4 as a download priced at 19.99 U.S. dollars.

Netflix this year will also release an eponymous strategy game, where players take turns, spinning off an original "The Dark Crystal: Age of Resistance" television series based on a dark puppet animated film from 1982 directed by Jim Henson and Frank Oz. And new "Stranger Things" role-playing puzzle game for mobile devices will be released next year.

"Like our other merchandising initiatives, these games are designed to build fandom for our titles and don't signal a push into gaming as a new business for Netflix," the company told shareholders.

Netflix also revealed plans to roll out a low-priced mobile-screen plan in India to lure people to its service there.

(With input from AFP)