The 'new normal' in Hollywood is believed to be advantageous for Netflix. It is suggested that the intensity of competition for content has lessened and that media company studios are more inclined to enter into licensing agreements. The potential introduction of an advertising tier is seen as a way for Netflix to further maximize revenue streams, with expectations that this could expand the total addressable market rather than just enhance average revenue per user. Forecasts for subscriber net additions remain positive, with projections for the third quarter described as 'likely conservative' and anticipation of growth continuing into the fourth quarter.

Netflix is still seen as a robust growth narrative with considerable potential for revenue, earnings, and free cash flow expansion in the upcoming years. Nonetheless, the current stock valuation suggests limited scope for further multiple expansion and anticipates a likely contraction as the company's growth decelerates into 2025, influenced by the diminishing transient benefit from paid sharing. It's assessed that Netflix sustained elevated subscriber growth due to paid sharing in the recent quarter, although the ephemeral advantages from this strategy are expected to diminish. The estimate for net additions in the third quarter has been revised upward.

The updated models within the media technology sector indicate a solid advertising market, as evidenced by a consistent 3% ad agency organic growth in the third quarter. This scenario is expected to contribute to a slight uptick in linear TV advertising revenues, notwithstanding the general decline when excluding Olympic-related revenues. There is a long-term confidence in the ad-supported tier of streaming services, which may be further strengthened by the inclusion of sports content and the potential for subscription price hikes.