The streaming video service ended the quarter with 1.7 million users worldwide, a significant miss from the 2.5 million figure it had predicted. In net terms, Netflix added 160,000 million users in the U.S., while it was predicting a gain of 500,000.

Netflix said in a letter to shareholders that “gross additions were on target.” Instead, it blamed the lackluster results on the number of subscribers who cancelled their service amid price increases. A “grandfathering” policy, in the process of being phased out, means longtime Netflix have until recently enjoyed lower prices than newcomers—$7.99 a month instead of $9.99 for the cheaper high-definition package.

“Gross additions were on target, but churn ticked up slightly and unexpectedly, coincident with the press coverage in early April of our plan to un­grandfather longer tenured members and remained elevated through the quarter,” reads the letter. “Churn” is a term describing the number of Netflix users who canceled their service.

While Netflix’s letter seeks to characterize “ungrandfathering” as something other than a price increase, the number of users who voted with their wallets are a sign to the contrary.

Netflix is predicting it will add slightly more than 300,000 U.S. subscribers in the third quarter.

“While un­grandfathering and associated media coverage may moderate near­-term membership growth, we believe that un­grandfathering will provide us with more revenue to invest in our content to satisfy members, thus driving long­-term growth,” reads Netflix’s letter. “Over the second half of this year, we’ll complete un­grandfathering.”