Netflix shares took a nosedive in after-hours trading on Monday afternoon when the company reported negative profits in its international streaming business after announcing a vast expansion into more than 130 countries earlier this year.

The digital video firm expects to remain in the red into the second quarter, with a subsequent loss of $80m.

It was also a rough day on the stock market for the company after an announcement in the morning from competitor Amazon, which unveiled a new, Netflix-ish monthly subscription plan for its own video service, previously a part of its annually renewed Amazon Prime program.

Netflix shares remained down by more than 10% from the company’s opening price throughout its after-hours earnings call.

The firm netted 4.51 million international subscribers in the first quarter of 2016. Before the expansion in the three months ending the 2015 fiscal year, Netflix brought in 4.04 million. Subscriber figures have grown steadily in international markets over the last several quarters.

Domestic subscriptions are still growing, as well: “The US market, we did about 2.25 million net adds, which is nearly identical not only to last year but the year before,” CEO Reed Hastings told analysts on the company’s earnings call on Monday afternoon. “We are thrilled to keep that growth steady.”

Hastings said he was still confident his company represented the future of the medium: “This is all part of the natural evolution from linear TV to internet TV,” he said. But with reference to whether or not Netflix could be stymied by other forms of TV viewing, he said: “Their growth doesn’t take away from us.”

The question of whether Netflix is cannibalizing income-generating viewership from the traditional television networks and studios that produce the vast majority of its shows remains an open one. Ted Sarandos, Netflix’s chief content officer, addressed the question a little more directly than Hastings when analysts quizzed him about the closeness of the company’s relationship with Disney.

“These have always been relatively complex relationships where they’re always a supplier and sometimes a competitor,” said Ted Sarandos. “They’re a great producing partner, they’re a great licensing supplier, and we’re always looking for ways we don’t bump into each other, but sometimes it’s inevitable.”



Disney has been under scrutiny from analysts on the subject of potential declines in revenue from its cable offerings; the ultra-lucrative sports network ESPN has been a major topic of conversation as analysts fret that a shift from traditional cable television to Hastings’ “internet television” could jeopardize its business model. Some have suggested that Disney might buy Netflix, but a deal for the company’s assets would have to reckon with that share price, which analysts have repeatedly called overvalued.