Core Viewpoint - Netflix is expected to report record revenue and earnings for the second quarter, driven by price increases and the growth of its advertising tier, despite a slowdown in subscriber growth following its password-sharing crackdown [1][2][3]. Revenue and Earnings Expectations - Wall Street anticipates Netflix will achieve $11.1 billion in revenue and $7.08 in earnings per share for the second quarter, an increase from $10.5 billion and $6.61 in the first quarter [1]. Growth Drivers - The primary growth drivers for Netflix this quarter are the price hikes implemented earlier in the year and the burgeoning advertising tier, which accounted for nearly half of the subscriber growth in the US during the first five months of 2025 [2][3]. - The advertising tier is on a strong trajectory and may eventually generate more revenue per user than the ad-free tier [2]. Subscriber Growth Trends - Netflix experienced significant subscriber growth in 2024 due to the password-sharing crackdown, with 41 million net sign-ups, including 18.9 million in the fourth quarter [3]. - However, the company has likely exhausted most of the immediate growth potential, as gross monthly additions in the US have leveled off, and the resubscribe rate has rebounded, indicating fewer first-time sign-ups [4]. Future Growth Potential - Analysts remain confident in Netflix's ability to sustain growth despite the diminishing effects of the password-sharing crackdown, citing the company's unmatched scale in streaming and opportunities in advertising and live sports [6][11]. - A strong content slate for the second half of the year, including new seasons of popular shows and live NFL games, is expected to bolster viewership and engagement [12]. - Netflix's viewership share remains strong compared to its paid competitors, despite losing some ground to YouTube [12]. Additional Growth Opportunities - Gaming is identified as a potential growth lever for Netflix, with analysts suggesting that the company is well-positioned to capitalize on this market, as many rivals have not yet made significant strides in streaming gaming [13].