MICHEL MARTIN, HOST:

There are some tough times in Hollywood right now, what with ongoing labor unrest and media businesses are struggling. But NPR's Chloe Veltman reports that Netflix is showing steady financial growth. The streamer is working to entice subscribers to embrace advertising.

CHLOE VELTMAN, BYLINE: All eyes are on Netflix - and not just on the streamer's hit shows like "Squid Game" and "Bridgerton."

(SOUNDBITE OF TV SHOW, "QUEEN CHARLOTTE: A BRIDGERTON STORY")

GOLDA ROSHEUVEL: (As Queen Charlotte) I wish to be entertained.

VELTMAN: The company's finances are under close scrutiny, because unlike many of its media industry rivals, Netflix is actually profitable.

RICK MUNARRIZ: It seems like every time Netflix does something, others follow.

VELTMAN: That's Motley Fool's senior media analyst, Rick Munarriz.

MUNARRIZ: It is the ultimate influencer without taking selfies.

VELTMAN: The streamer's share price has roughly doubled over the past year. Its latest quarterly earnings report shows it added nearly six million subscribers during the second quarter. Here's Chief Financial Officer Spencer Neumann speaking on a video following the report's release.

SPENCER NEUMANN: We delivered revenue in line in Q2 with our expectations, and we're on track to accelerate that revenue in Q3 and further accelerate in Q4.

VELTMAN: The company's drive towards revenue acceleration is mostly focused on advertising. Netflix's ad-supported subscription allows viewers to stream content at less than half of the monthly price of its ad-free memberships. Netflix also just announced the cancellation of its cheapest ad-free plan and recently put an end to password sharing, forcing viewers to pay extra for members outside their households. Andrew Uerkwitz is a senior analyst with the financial services firm Jefferies.

ANDREW UERKWITZ: These changes are being made to push people into the ad tier.

VELTMAN: Uerkwitz says Netflix needs millions more ad-based subscribers if it wants to attract advertising dollars from major brands and potentially lure fans of sports, live events and other lucrative genres away from ad-supported network TV.

UERKWITZ: So as you get critical mass with the ad tier, you start to get a lot more flexibility in the types of content you can show, the types of customers you can bring in to your platform.

VELTMAN: But the ongoing Hollywood writers and actors strikes put a dent in Netflix's prospects. In the company's earnings report video, CEO Ted Sarandos said his company has been hard at work negotiating with the unions.

TED SARANDOS: And we very much hoped to reach an agreement by now.

VELTMAN: Both the WGA and SAG-AFTRA blame streamers like Netflix for the industry shifts that they say have led to diminishing wages and working conditions. Here's SAG-AFTRA President Fran Drescher speaking last week in Los Angeles.

(SOUNDBITE OF ARCHIVED RECORDING)

FRAN DRESCHER: The entire business model has been changed by streaming, digital, AI.

VELTMAN: She says Hollywood's writers and actors need to stand up to the corporations who care more about Wall Street than they do about the talent. Chloe Veltman, NPR News.