Netflix shares surged on Monday after the firm said it now has about 104 million subscribers, a larger-than-expected number that boosted revenues.
Company leaders said the gains are a sign that investment in new shows and movies is paying off as online television becomes more popular.
The firm is behind shows such as 13 Reasons Why, about teen suicide, and the political drama House of Cards.
Boss Reed Hastings said it was “the rewards of doing great content”.
Netflix shares rose more than 10% in after-hours trading following the announcement of its second quarter earnings.
Company leaders said new content creation was critical to competing against other online rivals such as Amazon and YouTube, as well as traditional television.
They said generating new content also meant streaming services were expanding the size of the overall market.
“The largely exclusive nature of each service’s content means that we are not direct substitutes for each other, but …