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 remarkable 19 million additions in Q4 alone and a total yearly increase of 41 million. While this marks the final quarter for official subscriber growth reporting (though key milestones will still be announced), the company simultaneously announced price hikes in the US, Canada, Portugal, and Argentina.
This price adjustment, slightly over a year after the last increase in 2023, follows a pattern of annual price increases averaging $1-$2, dating back to 2014. Netflix justified the move 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 increases.
Multiple sources, including The Wall Street Journal and Bloomberg, report the following price 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. This allows users on the ad-supported plan to add an extra member outside their household for an additional fee—a feature 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 a 12% to 14% year-over-year revenue growth in 2025.
