The perspective that Hollywood's 'new normal' is advantageous for Netflix is highlighted, with a reduction in the intensity of content competition and a renewed willingness among media company studios to consider licensing. The introduction of an ad-supported tier is seen as a potential avenue for Netflix to further maximize revenue, potentially expanding the total addressable market rather than just enhancing average revenue per member. Projections for subscriber growth remain robust, with an anticipation of conservative net additions in the third quarter, and even stronger growth expected in the fourth quarter.

Netflix is still seen as an attractive growth narrative with considerable potential for revenue, earnings, and free cash flow expansion in the coming years. Despite this, the current valuation of the stock suggests limited prospects for further multiple expansion, with a possibility of contraction as the company's growth is expected to slow by 2025 due to the diminishing temporary benefits from paid sharing. It's anticipated that Netflix experienced another surge in subscriber growth due to paid sharing in Q3, but the advantage of this temporary boost is likely tapering off.

Netflix shares have experienced a significant rise, marking a 56% increase since the beginning of the year. Analysts observe that the company still harbors considerable potential for further global membership growth, an acceleration in advertising revenue, and improvements in operating leverage and margins, all of which are anticipated to contribute to attractive returns for shareholders in the upcoming year. The sentiment surrounding the upcoming Q3 earnings report is largely dependent on membership trends. Forecasts for Q3 membership growth have been revised upwards, with expectations now surpassing the consensus estimates prevalent among sell-side analysts.

With the stock up significantly post-Q2 outcomes due to optimistic third-party subscriber data, it's anticipated that Netflix will have to deliver robust results and future projections, along with a potential announcement of a price hike. Previously, Netflix has adjusted the price for its Premium service tier in various markets. It is now expected that there might be an increase in the price for the Premium tier in additional regions, and perhaps more notably, a significant rise in the Standard plan's cost. Since the last price change for the Standard plan in early 2022, there has been a reduction in the price difference compared to competitors. Additionally, compelling viewership figures for Q3 and an attractive lineup of content for Q4, including sports offerings, are likely to contribute to a decreased risk of subscriber turnover.