Netflix Hikes Prices Amid Record Subscriber Growth

Netflix has celebrated a monumental quarter by crossing the 300 million subscriber threshold once again, a testament to its enduring appeal and growth. In its full year 2024 earnings report, the streaming giant disclosed that it concluded the fiscal year with 302 million paid subscribers, achieving a quarterly record of adding 19 million subscribers in Q4 and an unprecedented total of 41 million for the entire year. This marks the last quarter where Netflix will report subscriber numbers, although the company has stated it will continue to share paid membership milestones as they are reached.

However, alongside these impressive figures, there was a significant announcement: Netflix is implementing yet another round of price increases across most of its plans in the U.S., Canada, Portugal, and Argentina. This move comes just over a year after the last price adjustment in 2023, and follows a pattern of annual increases dating back to the first hike in 2014. In their shareholder letter, Netflix justified the decision by stating, "As we continue to invest in programming and deliver more value for our members, we will occasionally ask our members to pay a little more so that we can re-invest to further improve Netflix."

While the letter did not specify the exact new prices, reports from The Wall Street Journal and Bloomberg indicate that the ad-supported plan will rise from $6.99 to $7.99 per month, the standard ad-free plan from $15.49 to $17.99 per month, and the premium plan from $22.99 to $24.99 per month. Additionally, Netflix has introduced a new "extra member with ads" plan, allowing individuals on an ad-supported plan to add someone outside their household for an additional fee, a feature previously exclusive to standard and premium plans.

Financially, Netflix reported a robust performance with a 16% year-over-year revenue increase to $10.2 billion for the quarter and $39 billion for the full year. Looking ahead, the company forecasts a revenue growth of between 12% and 14% for 2025, signaling continued confidence in its business model and market position.