"We believe the decision to raise prices in the U.S., Canada and parts of Latin America in 4Q were in part motivated by 3Q's success in Europe and management's overall confidence in the subscriber growth trajectory," Nomura said.
Last week, Netflix increased the price of its most popular streaming plan for new members by $1 to $9.99 per month.
Investment firm Wedbush said the price hikes reflect increasing content costs — as opposed to pricing power.
Netflix is inarguably the streaming market leader, taking about 38 percent of the U.S. video-on-demand market, followed by Amazon with 14 percent and Hulu with 7 percent, according to NPOWER and Nielsen research, which excludes broadband-only subscribers.
The company's growing domination of the streaming market has some traditional media outlets re-evaluating their licensing partnerships with Netflix — which could be a threat to its library of content down the line.
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"Already during the September conference circuit, we have heard some media executives, most notably at 21st Century Fox and Time Warner, become more vocal against selling content to Netflix, which now has 42 million subscribers in the U.S. and has been labeled the main culprit behind TV ratings declines," Nathanson wrote in a note earlier this week.
Media stocks were battered in August as investors appeared to lose faith as fears intensified about customers scaling back on traditional cable packages after Disney trimmed its forecast for TV subscriber-fee profit growth because of subscriber losses at its flagship ESPN sports network.
Traditional cable companies are still worried about cord cutting, but a big pop in Netflix's third-quarter subscriber growth doesn't necessarily mean that cord cutting has accelerated, according to S&P's Amobi.
"Cord cutting is definitely an issue; however I don't think it's such an issue right now to become overly concerned that somehow Netflix is going to dominate the overall television landscape, Amobi said.
Read MoreWhy cable companies' streaming plans might hurt them
Netflix shares have largely outpaced the wider market, gaining about 125 percent year to date as of midafternoon trading Tuesday, versus a 2 percent gain in the Nasdaq and 2 percent decline in the S&P 500.
The company will report third-quarter 2015 financial results Wednesday after the bell. A conference call with Reed Hastings, its CEO, is planned for 5 p.m. ET.
Disclosure: Hulu is a joint venture between Disney, 21st Century Fox and NBCUniversal (CNBC's parent company).