The streaming wars are still raging, and Netflix isn’t out for the count yet, as it announced in an earnings report that it had added 2.41 million net global subscribers.
The streaming giant saw its shares jump 14% after the bell on Tuesday after the company posted results that exceeded expectations on the top and bottom lines. The addition of subscribers is more than double what it said it expected a quarter ago, according to the earnings release.
The growth comes as Netflix is expected to shut down password sharing next year, allowing people borrowing accounts to create their own instead. In addition, those wanting to share their accounts with friends or family will be able to create and pay for sub-accounts.
The growth in Netflix subscribers was driven by the Asia-Pacific Region, where 1.43 million users signed up for the streaming service. The smallest increase came from the U.S. and Canada region, with only 100,000 net subscribers.
Spencer Neumann, the chief financial officer for Netflix, shared on an earnings call that they would still like to be growing at a quicker rate.
“We’re still not growing as fast as we’d like,” Neumann said. “We are building momentum, we are pleased with our progress, but we know we still have a lot more work to do.”
More changes are expected for Netflix in the future as it flirts with the idea of adding a lower-priced ad-supported plan which will launch in 12 countries in November. It shared that it is “very optimistic” about the new option.
The new tier isn’t expected to contribute to the company’s fourth-quarter results, but it does see the membership option becoming a more significant part of its plan going forward.
“After a challenging first half, we believe we’re on a path to reaccelerate growth,” the company said in a statement Tuesday. “The key is pleasing members. It’s why we’ve always focused on winning the competition for viewing every day. When our series and movies excite our members, they tell their friends, and then more people watch, join and stay with us.”
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