Netflix Celebrates Record Subscriber Growth with Price Hike
Netflix achieved a record-breaking quarter, surpassing 300 million paid subscribers for the first time. To support continued investment in programming and enhance member value, the company announced price increases across most plans in the U.S., Canada, Portugal, and Argentina.
The streaming giant ended 2024 with 302 million paid subscribers, a remarkable 41 million increase year-over-year, including a record 19 million additions in Q4. While this marks the final quarter for which Netflix will report subscriber growth figures, the company assures continued announcements of paid membership milestones.
This price adjustment, detailed in the shareholder letter, follows previous increases in 2022 and 2023, reflecting a pattern of roughly $1-$2 annual price hikes since 2014. The letter justifies the increase as necessary to reinvest in content creation and service improvements.
While the exact price increases weren't explicitly stated in the letter, reports from The Wall Street Journal and Bloomberg suggest the following changes:
- Basic with Ads: $6.99 to $7.99 per month
- Standard (ad-free): $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, allowing users of the ad-supported tier to add an extra household member for a fee. This expands the extra member option beyond standard and premium plans.
Despite the price increase, Netflix reported strong financial results. Q4 revenue surged 16% year-over-year to $10.2 billion, mirroring the annual revenue growth to $39 billion. The company projects 12% to 14% year-over-year revenue growth in 2025.
