Globally, total streaming paid memberships increased by eight million from 269.6 million in the January-March period.

Netflix reported a rise in both net income and revenue for the second quarter of the year, with total membership surpassing 277 million, as detailed in its financial results statement released on Thursday.

Net income surged to approximately $2.15 billion, marking a 44.3% increase from $1.49 billion in the same quarter of the previous year. Revenue climbed 16.7% to $9.56 billion, up from $8.19 billion during that period.

Paid memberships reached over 277.6 million between April and June, representing a 16.4% increase, or more than 39 million, from 238.4 million a year earlier. Total subscriptions had exceeded the 200-million mark in the final quarter of 2020.

Globally, total streaming paid memberships rose by eight million from the previous quarter’s figure of 269.6 million during January to March.

Netflix, the leading movie and series streaming subscription service, also reported a 34% increase in ad-supported memberships during the second quarter.

"Ads serve two key strategic goals for Netflix: they allow us to offer lower prices to consumers and generate an additional revenue and profit stream for the company," stated the report.

Following the discontinuation of its ad-free Basic plan in the UK and Canada earlier this year, Netflix will now extend this change to the US and France. In place of the $11.99 ad-free plan, the ad-supported plan, priced at $6.99 per month, will be available in the US, featuring two streams, high definition, and downloads.

Netflix highlighted that its ad revenue is "growing nicely" and is expected to contribute more significantly to its business.

"With this ongoing progress, we believe we are on track to achieve significant ad subscriber scale in our ad-supported markets by 2025, establishing a solid foundation for further growth in ad memberships in 2026 and beyond," the statement added.

Netflix’s stock closed at $643.04 per share on Thursday, reflecting a 0.68% decrease on the Nasdaq. However, it fell to as low as $621.95 in after-hours trading, marking a 3.3% decline.