Netflix profits soar as subscriber growth slows

Netflix reported its most profitable quarter ever and surpassed Wall Street’s expectations, earning $9.83 billion in Q3 despite slow subscriber growth. Revenue grew 15%, with net income rising 41% to $2.36 billion. 

The streaming giant added 5.07 million subscribers in the third quarter (down from 8.76 million a year earlier, mainly due to its password-sharing crackdown), ending the quarter with over 282.7 million subscribers globally.

Despite slower growth, Netflix’s share price increased 4.7% after the report, and is up over 46% this year.

To sustain growth, Netflix plans to raise prices in Italy and Spain, invest in advertising and gaming, and enhance its ad-supported plan, which has seen increased interest from new subscribers.