Netflix Inc., the world’s largest subscription streaming service, projected better-than-expected subscriber growth and said it may change prices to reduce account sharing. The stock soared in after-hours trading to a new high.

Netflix is forecasting 2.25 million new domestic subscribers this quarter, according to a statement Wednesday on its website. The company predicts first-quarter profit of $48 million, or 78 cents a share — above analysts’ projections of 75 cents.

New price strategies are being tested that would curb the ability of viewers to share accounts without paying more. Netflix is considering three tiers affecting how many devices customers may use at once, compared with the current $7.99-a- month unlimited tab. That would increase how much some new subscribers pay every month.

“Management appears more confident than at any time in their history,” said Michael Pachter, an analyst with Wedbush Securities in Los Angeles. “It’s either a sign that things are really great or that they’re starting to believe their own hype.”

Netflix forecasts first-quarter domestic streaming revenue of $796 million, with an operating profit of $198 million. International streaming is forecast to lose $42 million on revenue of $267 million.

Netflix gained 17 percent to $391.50 at 6 p.m. in New York, after hitting $395, an all-time high. The stock rose 1.5 percent to $333.73 at the close in New York and was the top performer last year in the Standard & Poor’s 500 stock index.

Price Tiers

Chief Executive Officer Reed Hastings has resisted calls to raise prices by investors who cite the company’s $6.4 billion obligation to pay for exclusive content over the next five years. Instead, Netflix has begun testing different prices.

Netflix is offering some new customers plans that provide access on as many as four screens, letting household members watch different shows at the same time. The monthly prices ran from $6.99 to $11.99, according to an offer posted on the Los Gatos, California-based company’s website in December.

“Eventually, we hope to be able to offer new members a selection of three simple options to fit everyone’s taste,” Hastings said in a letter to investors. “If we do make pricing changes for new members, existing members would get generous grandfathering of their existing plans and prices.”

Net Income

Fourth-quarter net income soared more than fivefold to $48.4 million, or 79 cents a share, Los Gatos, California-based Netflix said on its website, beating the 66-cent average of 31 analysts’ estimates compiled by Bloomberg. Domestic subscribers, including free trials, rose to 33.4 million, compared with the 33.1 million average of 10 estimates compiled by Bloomberg. International losses shrank.

With U.S. subscribers at Netflix topping those of Time Warner Inc.’s HBO, investors are looking to gauge the growth potential beyond so-called premium cable networks. Hastings’s strategy of offering unlimited Web viewing of movies, TV shows and original programs is financing international expansion.

Fourth-quarter sales grew 24 percent to $1.18 billion from $945.2 million a year earlier, beating estimates of $1.17 billion. Net income totaled $7.9 million, or 13 cents, a year earlier. The company’s international loss shrank to $57 million from $105 million a year earlier.

Court Ruling

In October, the company forecast profit of $29 million to $45 million, or 47 cents to 73 cents a share.

Netflix potentially faces higher costs after a U.S. appeals court this month overturned the Federal Communications Commission’s so-called net neutrality rules.

If upheld, cable-TV and telephone providers could demand Netflix pay fees for faster Web service to customers’ homes.

The Internet service providers “are generally aware of the broad public support for net neutrality and don’t want to galvanize government action,” Hastings said in his letter.

Domestic paid users rose 5.9 percent to 31.7 million from the third quarter. Outside the U.S., the total grew 20 percent to 9.72 million from the previous quarter.

Netflix also said it plans to raise $400 million in additional debt to finance international expansion and original programming over the next few years.

To contact the editor responsible for this story: Anthony Palazzo at apalazzo@bloomberg.net