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 41 million for the full year. While this marks the last quarter for official subscriber growth reporting (future announcements will be limited to key milestones), the company simultaneously announced price increases across most plans in the U.S., Canada, Portugal, and Argentina.

This price adjustment, detailed in the shareholder letter, follows similar increases in 2023 and 2022, reflecting Netflix's ongoing investment in programming and content creation. The company stated that these periodic price increases are necessary to reinvest in improving the Netflix experience. Specific price hikes weren't explicitly stated in the letter but reports from The Wall Street Journal and Bloomberg indicate the following changes:

• 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 subscribed to the ad-supported plan to add an additional household member for a fee, a feature previously restricted to standard and premium tiers.

Netflix's Q4 revenue saw a 16% year-over-year increase, reaching $10.2 billion, with full-year revenue also up 16% to $39 billion. The company projects 12% to 14% year-over-year revenue growth in 2025.