Shares of Netflix (NASDAQ:NFLX) jumped 7% after the closing bell Tuesday, following the announcement of a significant increase in subscribers. The streaming giant added 13.1 million subscribers in the fourth quarter, bringing its total to 260.8 million paid subscribers. This growth exceeded expectations set in October, when Netflix reported adding 8.76 million paid memberships in the third quarter, totaling 247 million.

Analysts had anticipated a continuation of this growth trend in Q4, projecting an addition of 8 to 9 million paid memberships. However, Netflix surpassed these projections, approaching a total of 256 million subscribers.

In a bold move to expand its subscriber base, Netflix announced it would begin streaming WWE Raw starting next year, marking a significant venture into live entertainment. This decision aligns with Netflix’s broader strategy shift from focusing solely on subscriber growth to prioritizing profitability. Measures to enhance revenue include price increases, stringent password sharing policies, and the introduction of ad-supported subscription tiers.

Early indications of the success of Netflix’s ad-based plan were revealed by Amy Reinhard, the company’s president of advertising, at the Variety Entertainment Summit at CES. According to Reinhard, the plan has garnered over 23 million global monthly active users, a substantial increase from the 15 million reported in November.

Netflix’s password sharing crackdown, implemented less than a year ago, remains a variable in assessing its impact on the company’s financial performance. Details on this are still forthcoming.

Additionally, Netflix implemented another set of price hikes recently, except for its $6.99 per month ad tier and standard $15.49 per month plan. The basic plan increased by $2 to $11.99 per month, and the premium plan rose by $3 to $22.99 per month. These price adjustments are part of Netflix’s strategy to cope with rising production costs, which have been exacerbated by the Covid pandemic and dual Hollywood labor strikes in mid-2023.

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