Netflix exceeded earnings expectations on Thursday, revealing that both profit and subscriber numbers surged, thanks to its significant investment in a robust content line-up, which paid dividends amidst efforts to curb password sharing.

The leading streaming service announced a remarkable addition of 9.3 million subscribers in the recently concluded quarter, bringing its total subscriber base to 269.6 million.

Netflix disclosed a profit of $2.3 billion on revenue of nearly $9.4 billion for the quarter, compared to a net income of $1.3 billion on $8.2 billion in revenue during the same period last year.

“Netflix continues to dominate its competitors,” remarked Ross Benes, a senior analyst at Emarketer. “This suggests that password sharing was even more prevalent than previously assumed, as Netflix successfully converts freeloaders into paying customers.”

Despite the positive earnings report, the company’s shares experienced a decline of over 4 percent to $581 in after-market trading, attributed to Netflix’s indication that sales in the current quarter might fall short of market expectations.

While Netflix shares have seen an upward trajectory since the beginning of the year, investors appear cautious about the company’s ability to sustain revenue growth and establish its nascent ad-supported tier as a significant revenue generator.

Netflix ventured into the ad-subsidized offering last year, coinciding with efforts to curb password sharing beyond household limits. Co-chief executive Greg Peters acknowledged that Netflix is still in the early stages of developing its ad business, which remains a work in progress.

Looking ahead, Netflix unveiled an expansive TV and film line-up for 2024, banking on compelling content to retain subscribers. Notable releases include the highly anticipated “3 Body Problem,” adapted from a best-selling Chinese trilogy of novels set in an alternate modern reality where humanity encounters an alien civilization.

Among the upcoming releases are the eagerly awaited second season of “Squid Game,” a Spanish-language TV series based on Gabriel Garcia Marquez’s “One Hundred Years of Solitude,” and a drama chronicling the life of Brazilian racing legend Ayrton Senna.

Additionally, Netflix announced collaborations with Britain’s Prince Harry and Meghan Markle on two nonfiction series, as well as the return of Eddie Murphy in a new “Beverly Hills Cop” sequel.

“As Netflix solidifies its position as an entertainment industry powerhouse, it will strive to avoid the complacency of its predecessors,” noted Benes.

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