Netflix Raises Prices Amid Historic Subscription Spike

Netflix Achieves Record Subscriber Growth, Announces Price Hikes

Netflix celebrated surpassing 300 million paid subscribers for the first time, hitting a record 302 million by the end of 2024's fiscal year. This impressive growth, fueled by a record 19 million new subscribers in Q4 and 41 million for the full year, will be the last such quarterly report, although the company will continue to announce membership milestones.

However, this positive news comes with a price increase. Slightly over a year after its last price adjustment in 2023 (following similar increases in 2022 and prior years), Netflix is raising prices across most plans in the US, Canada, Portugal, and Argentina. This increase, the company states, is necessary to fund continued investment in programming and enhance member value. The shareholder letter indicated that the price changes were already factored into their 2025 financial 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 plan: $6.99 to $7.99 per month
• Standard (ad-free) plan: $15.49 to $17.99 per month
• Premium plan: $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 tier to add an extra member outside their household 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, with annual revenue also up 16% to $39 billion. The company projects 12% to 14% year-over-year revenue growth in 2025.