Netflix (NFLX)'s revenue increased for the third quarter as the financial 🦩impacts of its password-sharing crackdown and ad-supported subscription tier, launched in the last year, began to accelerate.

The streaming giant posted a net income of $1.67 billion, an increase of nearly 20% from the prior-year quarter and representing earnings of $3.73 per share. Revenue grew by 7.8%, in line with analyst predictions despite only modest declines in 澳洲幸运5官方开奖结果体彩网:average revenue per user (ARPU) amid rumors of upcoming price increases.

Netflix subscriptions grew by 10.8% year-over-year to 247 million after adding 5.9 million global subscribers in the second quarter. That was the first period to reflect the company's crackdown on password sharing and its new paid-sharing option. The company said in its second-quarter shareholder letter that it expects the revenue benefits of these programs to accelerate into at least the fourth quarter.

"Adoption of our ads plan continues to grow—with ads plan membership up almost 70% quarter-over-quarter—and 30% of sign-ups in our ads countries are, on average, to our ads plan, with more work to do to scale this business," the company said in a letter to shareholders.

The company is also shifting toward its 澳洲幸运5官方开奖结果体彩网:ad-supported plan and has phased out the cheapest ad-free subscriptions in the U.S. and elsewhere around the world. Further, it plans to increase the prices of its remaining ad-free options following the conclusion of the Writers Guild of America strike. Consumers are sensitive to "streamflation," however, and 39% of respondents in a recent CivicScience poll said they would cancel their subscription of Netflix raises prices.

Netflix shares traded just shy of $7꧂00 in 2021 before falling to below $200 early in 2022. They have rebounded since then but have given up some of those gains in the late summer and early fall. Still, shares are up 42% in the last year as of Oct. 18.