Netflix shares plunged last night by more than a quarter of their value as the company revealed that it fell short of securing the amount of new subscribers it promised in the summer.

Facing increased pressure from rival streaming services, all of which are seemingly upping their game recently, plus rising its own prices have resulted in the company singing up more than half-a-million fewer subscribers in the last quarter than it had predicted in July.

It signed 3.02 million subscribers globally in preference to the 3.69 million it expected.

Its stock therefore dropped from $448.59 (£280.08) to $331, a drop of $117 in after-hours trading.

The streaming service will also have increased competition in its homeland of the US soon too. Time Warner announced yesterday that it would be launching its own online streaming service for HBO, the subscription channel behind some of the world's biggest TV shows, including Game of Thrones, True Detective and Boardwalk Empire.

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Amazon Instant Video has also made great strides in building a rival portfolio of original and exclusive content as it takes on Netflix head-to-head both overseas and in the UK.

However, Netflix said about HBO's more aggressive move into the streaming space that it would benefit from the decision too. "It is likely we both prosper as consumers move to Internet TV," it stated.

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