Netflix Achieves Record Subscriber Growth, Announces Price Hikes
Netflix celebrated surpassing 300 million paid subscribers for the first time, announcing record quarterly and annual subscriber growth in its 2024 full-year earnings report. The company added a record 19 million subscribers in Q4 2024, culminating in a total of 302 million paid memberships for the year – a record 41 million increase. While this marks the last quarter Netflix will formally report subscriber growth figures, they will continue to announce milestones.
However, this positive news is accompanied by another price increase, slightly over a year after the last one in 2023. This follows previous price adjustments in 2022 and annual increases of roughly $1-$2 prior to that, dating back to 2014.
Netflix justified the price hikes in its shareholder letter, stating that continued investment in programming and delivering increased member value necessitates occasional price adjustments to fuel further improvements. The price changes affect most plans in the U.S., Canada, Portugal, and Argentina, a factor already incorporated into the 2025 financial guidance.
Reports from The Wall Street Journal and Bloomberg suggest the following price increases:
- Ad-supported: $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 new "extra member with ads" plan has also been introduced, allowing users of the ad-supported tier to add an additional household member for a fee. Previously, this feature was limited to standard and premium plans.
Despite the price increases, Netflix reported strong financial results. Q4 revenue increased by 16% year-over-year to $10.2 billion, with annual revenue also up 16% to $39 billion. The company projects 12% to 14% year-over-year revenue growth in 2025.
