Los Gatos, California - Netflix topped earnings expectations Thursday, reporting 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 service said it gained 9.3 million subscribers in the recently ended quarter, raising the total to 269.6 million.

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.

Company shares slipped more than 4% to $581 in after-market trades, apparently due to the company saying sales in the current quarter might be less than market expectations.

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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 new ad-supported tier into a meaningful money-maker.

The ad-subsidized offering was launched last year around the same time as the crackdown on sharing passwords outside of homes.

Netflix unveiled a sprawling TV and film lineup for 2024 as it bet that must-see content would keep viewers paying for the streaming service.

In March, Netflix released keenly-anticipated 3 Body Problem.

The series was adapted from a best-selling Chinese trilogy of novels, which take place in an alternate version of modern reality where humanity has made contact with an alien civilization.

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Other shows due later this year include the eagerly awaited second season of Squid Game, which remains by far the most-watched Netflix TV series ever.

Netflix co-chief executive Ted Sarados said on an earnings webcast that the company is also determined to make better films.

Sarandos pointed out that TikTok and YouTube, while competing for viewing time in the big picture, have also revved up "fandom" with people sharing show snippets, memes, and commentary.

Those platforms have also helped Netflix spot talented storytellers that the streaming television service is keeping its eyes on, according to Sarandos.