### Netflix Surpasses Expectations with 5.1 Million New Subscribers in Q3

LOS ANGELES - Netflix outperformed Wall Street predictions by gaining 5.1 million new streaming subscribers in the third quarter, exceeding expectations by over a million users. Investors responded positively, boosting Netflix shares by 3.5% to $711.98 in after-hours trading on Thursday following the earnings announcement.

Analysts had projected the streaming giant to add 4 million subscribers between July and September, based on estimates from LSEG. The company's robust lineup during this period featured new shows such as the murder mystery "The Perfect Couple" and the romantic comedy "Nobody Wants This."

Netflix reported diluted earnings per share at $5.40, surpassing the anticipated $5.12. Revenue for the quarter reached $9.825 billion, slightly above the consensus forecast of $9.769 billion. While the company did not disclose specific projections, it expects customer growth to accelerate further in the final months of the year, buoyed by the return of the popular Korean drama "Squid Game."

The streaming service has been refocusing investor interest from subscriber numbers to other key metrics, such as revenue growth and profit margins. Its operating margin rose to 30% in this quarter, up from 22% a year ago. In a letter to shareholders, Netflix expressed optimism about concluding the year strongly, supported by a compelling lineup in the fourth quarter.

Following the resolution of last year's Hollywood strikes, the company reported an increase in its programming volume. Engagement metrics also remained high, with members averaging two hours of viewing per day.

Netflix has been enhancing its ad-supported plans, aiming to boost revenue from this sector, although it does not foresee advertising becoming a primary growth driver until 2026. During the September quarter, more than half of the signups in countries with an ad-supported service came through these plans.

A key component of Netflix's strategy includes live events, particularly sports, which provide significant appeal for advertisers. In November, the platform will stream a fight between YouTube star Jake Paul and Mike Tyson, followed by its first NFL games in December. Forrester's research director Mike Proulx noted that live and compelling programming could create valuable advertising opportunities by attracting large, engaged audiences.