Netflix Achieves Record Subscriber Growth, Announces Price Hikes
Netflix celebrated surpassing 300 million paid subscribers for the second time, reporting a record-breaking 19 million new subscribers in Q4 2024 and a total of 41 million for the year, culminating in 302 million paid memberships. While this marks the last quarter for which Netflix will explicitly report subscriber growth figures, the company assures continued announcements at key milestones.
This achievement is coupled with another price increase across most plans in the US, Canada, Portugal, and Argentina. This marks the latest in a series of annual price adjustments, reflecting a pattern of roughly $1-$2 increases since 2014. Netflix justifies these increases as necessary to fund continued investment in programming and enhance member value.
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: $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 household member 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 annual revenue growth to $39 billion. The company projects a 12% to 14% year-over-year revenue growth for 2025.
