Netflix Achieves Record Subscriber Growth, Announces Price Increases
Netflix concluded 2024 with a record-breaking fourth quarter, surpassing 300 million paid subscribers for the first time. The streaming giant added a remarkable 19 million subscribers in Q4 alone, culminating in a total annual increase of 41 million. While this marks the final quarter for which Netflix will report subscriber growth figures in this format (future announcements will be tied to key milestones), the achievement is undeniable.
However, this celebratory announcement is coupled with a price hike affecting most plans in the U.S., Canada, Portugal, and Argentina. This marks yet another price increase for Netflix, following similar adjustments in 2023 and 2022, reflecting a pattern of roughly $1-$2 annual increases since 2014.
In a letter to shareholders, Netflix justified the price adjustments as necessary to fund continued investment in programming and enhance member value. The company stated that these price changes were already anticipated in its October 2024 guidance for 2025.
While the exact price increases weren't explicitly detailed in the shareholder 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 noteworthy addition is a new "extra member with ads" plan. This allows users on the ad-supported plan to add an additional household member for a fee, expanding the option previously limited to standard and premium plans.
Despite the price increases, Netflix reported strong financial results. Q4 revenue surged 16% year-over-year to $10.2 billion, mirroring the annual revenue growth of 16% to $39 billion. The company projects revenue growth between 12% and 14% year-over-year for 2025.
