Netflix has exceeded market estimates with a significant rise in ad-supported memberships during the second quarter, showcasing its dominance in the streaming industry. The media giant reported a 34% increase in ad-supported memberships compared to the previous year, highlighting the growing importance of advertising as a revenue stream for streaming services.

The company’s global paid memberships also saw a substantial uptick, rising by 16.5% year over year to reach 278 million. This surge in membership numbers has been a key factor in driving Netflix’s revenue growth, which reached $9.6 billion in the second quarter, a 17% increase from the same period last year.

Netflix’s performance for the period ending June 30 surpassed Wall Street expectations, with earnings per share coming in at $4.88 compared to the expected $4.74 per share. The company’s revenue of $9.56 billion also exceeded estimates, further solidifying its position as a market leader in the streaming space.

The streaming giant has revised its full-year revenue growth forecast to 14% to 15%, up from the previous guidance of 13% to 15%, indicating strong confidence in its financial outlook. Netflix reported a net income of $2.15 billion for the quarter, a significant increase from the same period in 2023.

In a strategic shift, Netflix announced that it would no longer provide quarterly membership numbers or average revenue per user starting in 2025, focusing instead on revenue and operating margin as primary financial metrics. The company emphasized that customer engagement, measured by time spent on the platform, would be a key indicator of customer satisfaction going forward.

The company’s stock has been on the rise, driven by initiatives such as cracking down on password sharing and introducing a more affordable, ad-supported subscription tier. These measures have helped Netflix reignite revenue growth after experiencing a slowdown in subscriber growth in 2022.

With a strong performance in the second quarter and a positive outlook for the rest of the year, Netflix continues to lead the streaming market with its innovative business strategies and focus on enhancing customer experience.