Netflix Announces Yet Another Price Hike as it Adds a Record Number of New Subscribers

Netflix Achieves Record Subscriber Growth, Announces Price Increases

Netflix celebrated surpassing 300 million paid subscribers for the first time, reaching a record 302 million by the end of 2024, with a phenomenal 19 million added in Q4 alone and a total yearly increase of 41 million. While this marks the last quarter of official subscriber growth reporting (though the company will continue to announce milestones), it's accompanied by another price hike.

This price increase, affecting most plans in the U.S., Canada, Portugal, and Argentina, comes just over a year after the last one in 2023, continuing a pattern of roughly $1-$2 annual increases dating back to 2014. Netflix justifies the increase by citing ongoing investment in programming and a commitment to delivering greater member value. The shareholder letter states that these price adjustments are necessary for reinvestment and improvement.

While the exact price increases weren't explicitly detailed in the letter, reports from The Wall Street Journal and Bloomberg suggest the following changes:

• Ad-supported plan: $6.99 to $7.99 per month
• Standard (ad-free) plan: $15.49 to $17.99 per month
• Premium plan: $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 plan to add an extra member outside their household for an additional fee, a feature previously restricted to standard and premium plans.

Netflix's Q4 revenue saw a 16% year-over-year increase, reaching $10.2 billion, mirroring the same percentage growth in annual revenue ($39 billion). The company projects 12% to 14% year-over-year revenue growth in 2025.