By all accounts, Netflix (NFLX) -) had a blow out quarter.
The streaming giant reported a 20% year-over-year increase in profits as group revenues climbed to $8.54 billion thanks in part to the 8.76 million new subscribers Netflix added globally in the third quarter.
The stock has jumped 15% since last week's report as investors reward the company's recent changes in strategy like raising prices and cracking down on password sharing.
Related: Why is Netflix raising prices when its top-10 program viewership is down?
Netflix has run into trouble in the past when the market became nervous over the amount of money the company was spending to create content. But Netflix reported a 3% year-over-year increase in operating income to 22.4%, and part of that improvement has been the company's continued embrace of third-party content.
Shows that aren't Netflix originals are a large portion of the hours subscribers spend on the platform. And some of the streamer's most successful third-party shows were originally broadcast and produced by one of its biggest rivals.
Earlier this summer, Netflix came to an agreement with HBO parent company Warner Bros. Discovery (WBD) -) to gain access to shows like "Insecure," "Six Feet Under," "Ballers," "Band of Brothers" and "The Pacific."
The company's third-party strategy came up during it's earnings call and here's what executives had to say:
"I think Suits is a great example of the impact of the Netflix effect that we could have because of our distribution footprint and our recommendation system, we were able to take Suits, which had played on cable and had played on other streaming services and pop it right into the center of the culture in a huge way," co-CEO Ted Sarandos said during Netflix's earnings call.
"You mentioned 'Band of Brothers,' but in that HBO deal, we had 'Insecure,' we had Ballers that came out and they were very successful on Netflix, and they popped into the top 10 on their originating network for the first time. So, that was on the streaming service, which is really powerful. And I think we have more to come with 'Six Feet Under' and 'True Blood coming.'"
