Netflix (NFLX) reported its second quarter results revealing its global paid memberships rose to 278 million, with earnings per share of $4.88 topping the expected $4.74.

Third Bridge Group sector analyst Jamie Lumley joins Market Domination Overtime to give insight into Netflix's performance and how it compares with the rest of the sector.

Lumley comments on Netflix no longer counting on subscribership as its measurement of growth, saying, "operating margin really jumps out here." He adds that operating margin "is where they can really flex their muscle against the rest of the competition. Disney is targeting double-digits long term, that just over 10 [percent] and Netflix is not only there, continues to really be head-and-shoulders above this."

Watch the video above to hear why Lumley says Netflix's ad business "has yet to really prove itself."

For more expert insight and the latest market action, click here to watch this full episode of Market Domination Overtime.

This post was written by Nicholas Jacobino