Netflix (NFLX 1.74%) surprised many with its most recent quarterly report by adding 7.7 million subscribers -- far more than the 4.6 million analysts had broadly expected.

With many experts anticipating a resurgent bull market in 2023, some may be looking at the potential of streaming stocks going forward. Here are three reasons Netflix could be a buy.

Price cuts as growth stalls

Competition in the subscription video-on-demand industry has tightened over the last couple of years, with many operators experiencing tepid growth -- or worse, losing customers. Netflix experienced a notable dip in subscribers during fiscal 2022, and more recently, Walt Disney lost Disney+ customers for the first time in its history.

Despite these market challenges, Netflix has opted to try something bold: cutting prices. Last month, the company reduced subscription fees in 30 markets across multiple territories, including Europe, the Middle East, and Africa.

The move may seem counterintuitive -- Netflix is seemingly gambling that it can make up the revenue shortfall by attracting enough new subscribers. However, by some estimates, just 10 million of Netflix's more than 230 million customers will benefit from the revised pricing, so it's ostensibly a risk worth taking.

Ads as a core revenue driver

Netflix has made clear it has several long-term goals, not least of which is to grow the amount of money it makes from advertising.

Before the TV streamer introduced its $6.99 a month Basic with Ads plan in November 2022, the company was purportedly bullish on its prospects; the Wall Street Journal reported Netflix's internal projections pointed toward the company having 40 million customers for its ad-supported tier by the end of its 2023 fiscal third quarter. But sign-up rates were initially lacking, so Netflix had to return some money to its advertisers.

Gregory Peters, Netflix's chief operating officer, addressed concerns about how the company's ads-based endeavors were going during the streamer's 2022 Q4 earnings call. Peters noted the underlying technology was holding up well, but conceded there were still some improvements to be made on the ad sales side. (Netflix's ads operation was built in partnership with Microsoft's, which also handles ad inventory and sales.)

A bright spot for investors when it comes to the nascent phase of Netflix's ad strategy is that churn doesn't seem to be a major issue for Netflix. As highlighted by Peters, many investors had raised questions about the risk of Netflix customers transitioning away from higher-cost plans to Basic with Ads. But, Peters says, such churn hasn't been a problem, noting the "unit economy remains very good."

Netflix's shares are far below their peak

Perhaps the most compelling reason to snap up Netflix stock right now is that the company's share price is much cheaper than it has been in recent years; in November 2021, Netflix's stock was trading at around $680 apiece. At present, you can purchase shares for around $300 -- a difference of 55%. Of course, a lot has to go right for Netflix for its shares to get close to $700 again, but many analysts believe the company's stock has the potential to climb over the near term.

As CNN reports, based on the projections of 34 analysts, the median price of Netflix's stock in 12 months time is $384, while 43 market watchers have given the stock a hold rating.

Netflix is primed for a bull market

In spite of Netflix's strength, the global nature of the company means big macroeconomic factors need to be taken into account when considering its near-term stock potential.

The International Monetary Fund has projected global economic growth for 2023 and 2024 will be lower than in 2022, which could make growth harder to come by. But with everything laid out above, Netflix is still in a strong position to benefit from a bull market.

Not only is the streamer making a solid play for new customers in emerging territories, it's also building out its ad plan without jeopardizing its more expensive offerings. And considering many on Wall Street have faith Netflix's stock has space to climb, the long-term signs are positive.

Those considering Netflix as an investment may want to pay attention to the company's Q1 2023 earnings, which are expected on or around April 17, 2023. If the streamer can show it is still adding subscribers, it's a good indication that Netflix's strategies are paying off.