Netflix Hikes Prices Again Amid Record Subscriber Growth

Netflix has once again surpassed the 300 million subscriber mark, adding a record-breaking 19 million new subscribers in the fourth quarter of 2024, culminating in a total of 302 million paid subscribers for the year. This impressive growth of 41 million subscribers over the year marks the last time Netflix will report such figures, as the company plans to shift away from quarterly subscriber updates while still announcing milestones in paid memberships.

However, alongside this celebration of growth, Netflix announced 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 hike in 2023, continuing a trend of annual increases that began in 2014. In their shareholder letter, Netflix justified these adjustments 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."

The specifics of the price hikes were not detailed in the letter, but reports from The Wall Street Journal and Bloomberg suggest the following changes: the ad-supported plan will increase from $6.99 to $7.99 per month, the standard ad-free plan will rise from $15.49 to $17.99 per month, and the premium tier will go from $22.99 to $24.99 per month. Additionally, Netflix introduced a new "extra member with ads" plan, allowing those on an ad-supported plan to add an individual outside their household for an additional fee—a feature previously exclusive to standard and premium plans.

Financially, Netflix reported a 16% year-over-year increase in quarterly revenue, reaching $10.2 billion, and a similar annual growth to $39 billion. Looking ahead, the company forecasts a revenue growth of between 12% and 14% for 2025.