Netflix Raises Prices Amidst Record-Breaking Subscriber Growth

Netflix Achieves Record Subscriber Growth, Announces Price Increases

Netflix celebrated surpassing 300 million paid subscribers for the first time, hitting a record 302 million by the end of 2024. This follows a record-breaking Q4 with 19 million new subscribers and a total of 41 million for the year. While this marks the last quarter Netflix will formally report subscriber growth figures, they will continue to announce milestone membership numbers.

However, this positive news comes with a price increase across most plans in the U.S., Canada, Portugal, and Argentina. This marks another price adjustment, following increases in 2023 and 2022, and reflects a pattern of roughly $1-$2 annual increases dating back to 2014.

Netflix justified the price hike in its shareholder letter, stating that continued investment in programming and enhanced member value necessitates occasional price adjustments to fuel further improvements. The company confirmed that the price changes in Argentina were already factored into their 2025 guidance.

While the exact price increases weren't specified in the letter, reports from The Wall Street Journal and Bloomberg suggest the following changes:

• 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 significant addition is a new "extra member with ads" plan. This allows users of the ad-supported plan to add an extra household member for a fee, a feature previously restricted to standard and premium plans.

Netflix's Q4 revenue reached $10.2 billion, a 16% year-over-year increase, mirroring the annual revenue growth to $39 billion. The company projects 12% to 14% year-over-year revenue growth in 2025.