The US giant was able to reassure Wall Street as it prepares to offer a new streaming option with advertising. From July to September Netflix attracted 2.4 million new subscribers worldwide which is more than double what Wall Street had predicted.
It comes after the company’s stock had fallen nearly 60 percent this year before the latest positive earnings report.
Investing.com analyst Haris Anwar commented that “Netflix’s impressive numbers show the company’s growth story is far from over.”
The California based streaming giant was boosted in the third quarter by hit shows such as cult Sci-fi series ‘Stranger Things’.
Serial killer series ‘Dahmer – Monster: The Jeffrey Dahmer Story’, has also become one of the most watched Netflix shows of all time.
Netflix is working to kick-start membership growth after a sudden decline earlier this year.
Amongst a difficult world economy and growing competition for online video viewers the company’s subscription base declined by 1.2 million.
However, Netflix now has 223.1 million subscribers around the world.
In the United States most established competitors have stopped growing as the market has reached maturity.
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Some rivals such as Walt Disney Co run multiple businesses such as TV networks and Theme Parks to offset losses.
Netflix is due to launch a $7-per-month streaming plan with advertising in early November to attract cost-conscious customers.
Rivals such as Disney, Warner Bros Discovery amongst others offer or plan to offer ad-supported options.
PP Foresight analyst Paolo Pescatore said that he thought that some of Netflix’s current subscribers will switch to the cheaper plan.
He said: “Some will downgrade or decide to come back to Netflix.
“The move is as much about retaining users as well as signing up new ones.”