Netflix Achieves Record Subscriber Growth, Announces Price Hikes
Netflix celebrated surpassing 300 million paid subscribers for the second time, reporting a record-breaking 19 million new subscribers in Q4 2024 and a total of 41 million for the year, culminating in 302 million paid memberships. While this marks the last quarter of official subscriber growth reporting (future announcements will be limited to key milestones), the achievement is accompanied by another price increase.
This price adjustment, impacting most plans in the U.S., Canada, Portugal, and Argentina, comes just over a year after the last hike in 2023, following similar increases in 2022 and prior years. Netflix justified the increase in its shareholder letter, stating that continued investment in programming and member value necessitates occasional price adjustments to fuel further improvements. The letter, however, didn't specify the exact price changes.
According to reports from The Wall Street Journal and Bloomberg, the price increases are as follows:
- Basic with Ads: $6.99 to $7.99 per month
- Standard: $15.49 to $17.99 per month
- Premium: $22.99 to $24.99 per month
A significant addition is a new "extra member with ads" plan. This allows users of the ad-supported tier to add an additional household member for a fee, a feature previously exclusive to standard and premium plans.
Despite the price hikes, Netflix reported strong financial results. Q4 revenue reached $10.2 billion, a 16% year-over-year increase, mirroring the annual revenue growth to $39 billion. The company projects 12% to 14% year-over-year revenue growth in 2025.
