Shares of Netflix Inc on Tuesday surged 20% to rise to $119.82 (Rs 7,993 approximately) from $99.80 (Rs 6,657 approximately) after reports said the television service firm added over 50% more subscribers than expected in the third quarter. The company's revenue also surged 31.7% to $2.29 billion (Rs 15,276 crore approximately).

Michael Pachter, an analyst with Wedbush Securities, explained how Netflix shares are connected with the subscription growth. He told Reuters: "Investors appear laser focused on subscriber growth, and so long as Netflix delivers on that metric, investors will bid its shares up.”

Analysts had estimated the subscription to go up by 2.01 million, but Netflix managed to bring on board 3.2 million new subscribers out of which 3,70,000 were from the United States. Original shows such as Stranger Things and Narcos have attracted new international viewers and managed to retain old customers in the US, despite price hike, reported Reuters. Currently, there are around 86.74 million Netflix subscribers around the world, according to AFP. Company officials said that other popular shows like Orange is the New Black and House of Cards will attract another 1.45 million subscribers in the US in the current quarter.

However, the company, which has its service running in over 130 countries, is now mulling to drop its plans of targeting Chinese viewership. A company official told AFP: "We now plan to license content to existing online service providers in China rather than operate our own service in China in the near term."