Netflix's Ad Business Boosts Stock by 9% in Q3

Netflix's stock jumped 9% on Friday after the company's third-quarter earnings report showed strong growth in its advertising business. The streaming giant added over 5 million paid subscribers, beating Wall Street's expectation of 3. 5 million. However, this figure is a 40% decrease from the same period last year due to the fading effects of its password-sharing crackdown. Despite the drop in new subscribers, Netflix's revenue rose 15% year-over-year to $9. 8 billion. Its net income also increased by 40% to $2. 4 billion. The company expects its full-year revenue to grow by 15%, which is at the high end of its previously projected range.Netflix's success in ad-supported memberships is notable. These memberships rose by 35% quarter over quarter and made up 50% of new signups. The company sees this as a promising new revenue stream, even though it doesn't expect ads to be a primary driver of growth in 2025. In August, Netflix managed to boost its upfront sales commitments by 150% from the previous year. This is the second year the media giant has participated in upfront negotiations, where advertising deals for the upcoming broadcast year are made. Netflix plans to test an in-house ad tech platform in Canada this year before rolling it out more widely in 2025. This shows the company's commitment to growing its advertising business.