Netflix topped earnings expectations, reporting Thursday that profit and subscriber ranks grew as its heavy bet on a rich content line-up paid off amid a crackdown on password sharing.
The leading streaming television service said it gained 9.3 million subscribers in the recently ended quarter, raising the total to 269.6 million.
"Netflix continues to lay the smackdown on its competition," said Ross Benes, Emarketer senior analyst.
"This signals that password sharing was even more common than previously thought as Netflix keeps converting freeloader viewers into paid users."
Netflix reported a profit of $2.3 billion on revenue of nearly $9.4 billion in the quarter, compared to a net income of $1.3 billion on $8.2 billion in revenue in the same period a year earlier.
Netflix shares have climbed since the start of this year, but investors seemed wary of the company's ability to keep pumping up revenue and develop its nascent ad-supported tier into a meaningful money-maker.
