Netflix shares jumped 14.3 per cent to US$275.86 in after-hours trading after it reported a return to subscriber growth - and forecast further gains.

The streaming giant said it added a net 2.41 million subscribers worldwide during its September quarter, and predicted it would gain another 4.5 million in the December quarter.

Revenue grew 5.9 per cent to US$7.93 billion, while net profit fell 3.5 per cent to US$1.4b. Both numbers were better than analysts had been picking.

The streaming giant, whose shares dived from US$700.99 to as low as US$162.71 as it reported a combined loss of 2 million subs across its first and second quarters, had earlier flagged it would be back in positive territory in the third quarter.

But its July-September subscriber gains were more than double the number anticipated amid hits like The Jeffrey Dahmer Story and Stranger Things Season 4 - which was arbitrarily broken into two sets of episodes, against Netflix's traditional "binge paradigm", with the second instalment tipping it into third-quarter reporting period.

Netflix's shares had already been ticking upward this month after it confirmed it will offer cheaper, ad-subsidised plans in 12 countries from November 3, and new measures to counter password sharing.

The firm said today it was "very optimistic" about Netflix Basic With Ads (which will cost A$6.99 per month across the ditch, with no NZ launch date given so far). But it gave no specific guidance beyond it did not expect ad revenue to make a material contribution during the December quarter.

Back ahead of Disney

After its June quarter subscriber losses, Netflix lost its lead in the global streaming market to Disney, which added 14.4 million to nose ahead for the first time with 221.1 million total streaming subs across its three streaming platforms: 151 million for Disney+ and the balance for Hulu and ESPN.

Amazon does not break out a figure for Prime Video, but has around 200 million subscribers to its Prime service, which includes delivery, plus music and video streaming.

With the gains reported today, Netflix regained its lead - at least temporarily: Disney has yet to file its third-quarter numbers - with 223.1 million subs worldwide.

Better, for investors, it guided to more gains in the December quarter, which it said it would finish on 227.6 million - or a gain of 4.5 million subs.

While a welcome return to growth for investors, that would still fall short of the 8.3 million subs that Netflix added in the final quarter of 2021.

Netflix now has more subscribers outside North America than inside North America for the first time. Non-English content like Call My Agent (aka Dix Pour Cent) is a point of difference with rivals Disney+ and Amazon Prime Video.

Netflix did not break out numbers by country - although Nielsen and Roy Morgan have taken a stab at a NZ number here), but its Asia-Pacific business unit, which includes New Zealand, was its fastest growing with a gain of 1.43 million subs v the 104,000 additions across the US and Canada.

The remote control for Sky TV's new Sky Box and Sky Pod (pictured) features a dedicated Netflix button. Photo / File

There will be more exposure in the NZ market in the approach to Christmas as Sky TV rolls out its new Sky Box and Sky Pod, both of which support streaming apps, including Netflix. While the new Sky Box will support a range of streaming services, only Netflix will have a dedicated button on its remote.

For the first time, Netflix has more users outside than inside North America. In a notable point of difference with Disney and Amazon, Netflix's slate includes non-English language programming, where its hits have included the French Dix Pour Cent (aka Call My Agent) and the Korean Squid Game. In the September quarter, Netflix had hits with another Korean series, Extraordinary Attorney Woo, plus the Danish thriller Loving Adults.

Password-sharing crackdown, gaming

Beyond the introduction of its ad plan, Netflix is looking to a crackdown on password sharing and an expansion of its gaming division to drive growth.

Yesterday, Netflix revealed a new feature that makes it easier for someone who freeloads on another person's account to set up their own membership without losing any of their profile settings.

Today, the company said it would next year extend a scheme trialled in several South American countries, which allows a subscriber to add up to two account profiles, for US$2.99 per month each, for up to two people living outside their household.

Netflix also said it would expand its gaming service, which currently features 35 games. About 55 new games are in development, with some based on Netflix IP (intellectual property) - or riffing on Netflix series and movies.

With its streaming game service coming up to its first anniversary, Netflix did not say how many members had played a title.

"Our first year was about establishing our gaming infrastructure and understanding how our members interact with games," the company said in its letter to shareholders.

The streaming game market has proved a tough nut to crack. Last month, Google said it would close its Stadia service in January. Stadia offered access to a range of cloud-based games for $9.99 per month.

Netflix's current modest selection of games - included with the cost of your regular sub - can be downloaded to an iPhone, iPad, or an Android phone or tablet.

The company said today that it will open its own game studio in California, and look to add cloud-based titles.