Netflix's stringent policy on password sharing is expected to boost its customer base by approximately 6 million in the third quarter, and the pioneering streaming service is likely to announce a price increase when reporting its earnings on Wednesday.

As the only major profitable streaming provider, Netflix has declined to follow the lead of competitors like Walt Disney, who raised their ad-free service prices this year. Instead, Netflix has restricted password sharing outside of households to reach over 100 million viewers who use their services without subscribing.

"Netflix now resembles a utility in many markets," said an analyst at Bernstein, as quoted by Reuters. "The challenge for them as a 'utility' company is how to continue growing, given their established position."

There is a possibility that Netflix will raise its rates after the strike involving Hollywood actors, as mentioned in a media report in early October.

Five months after a strike that disrupted Hollywood, the Writers Guild of America (WGA) agreed to a new contract with major studios.

However, Netflix has managed to weather the strike's impact well, thanks to its strong international expansion and high-quality content catalog.

Following the introduction of slow ad options last year, analysts predict that Netflix will increase prices for ad-free options in the coming months to encourage more customers to switch to ad-supported packages, thereby increasing revenue per user.

So far, most customers who joined Netflix after the password sharing restrictions prefer ad-supported packages. The standard package with ads is priced at $6.99 per month, while ad-free packages start at $15.49.

"Through this strategy, Netflix may double the number of ads shown to users in the coming year," said Insider Intelligence analyst Ross Benes. He predicts that Netflix will display more ads over time to catch up with its competitors.

Advertising is expected to generate around $188.1 million in revenue in the third quarter ending in September, with an additional 2.8 million subscribers, according to Visible Alpha's estimates.

Overall, Wall Street projects that Netflix will have its strongest quarterly customer growth this year, according to data from the LSEG.

Revenue in the third quarter is expected to increase by 7.7% to $8.54 billion, the fastest growth in the last five quarters, thanks to a strong program portfolio that includes the latest seasons of "Sex Education" and "Virgin River."