Netflix Hikes Prices Amid Record Subscriber Growth

Netflix has achieved a remarkable milestone by surpassing 300 million subscribers once again, marking a record quarter of new subscriber growth. The company added a quarterly record of 19 million subscribers in Q4 and a total of 41 million for the entire year, concluding 2024 with 302 million paid subscribers. This is the last quarter Netflix will report subscriber growth numbers, though it plans to announce paid memberships at significant milestones in the future.

However, alongside this achievement, Netflix has announced a price increase for most of its plans in the U.S., Canada, Portugal, and Argentina. This move comes just over a year after the last price hike in 2023, continuing a trend that saw increases in 2022 and annual adjustments dating back to 2014. The company justified the price adjustment in its shareholder letter, stating, "As we continue to invest in programming and deliver more value for our members, we will occasionally ask our members to pay a little more so that we can re-invest to further improve Netflix."

Although the shareholder letter did not specify the exact new prices, reports from The Wall Street Journal and Bloomberg indicate that the ad-supported tier will increase from $6.99 to $7.99 per month, the standard ad-free plan will rise from $15.49 to $17.99 per month, and the premium tier will go from $22.99 to $24.99 per month. Additionally, Netflix introduced a new "extra member with ads" plan, allowing individuals on an ad-supported plan to add someone outside their household for an additional fee, a feature previously limited to standard or premium plans.

Financially, Netflix reported a 16% year-over-year increase in quarterly revenue, reaching $10.2 billion, and an annual revenue growth of the same percentage, totaling $39 billion. The company forecasts a year-over-year growth of between 12% and 14% for 2025.