RBC Capital's Mark Mahaney says Netflix raising prices to support its increased spending on content is a strong strategy. Mahaney thinks the price for a premium subscription could go even higher, as long as the "$7.99 anchor" continues to exist. Netflix's advantage is the ability to increase content spend while also upping subscribers. The video streaming service reported earnings after the bell on Monday. Notably, the company added 4.45 million international subscribers, higher than Wall Street expectations. Netflix also said it plans to spend between $7 and $8 billion on original content in 2018. After the report, RBC increased its price target on Netflix from $210 to $250. Mahaney says he sees Netflix's ability to grow internationally as a big competitive advantage for the company.