Netflix Announces Yet Another Price Hike as it Adds a Record Number of New Subscribers

Netflix Achieves Record Subscriber Growth, Announces Price Increases

Netflix celebrated surpassing 300 million paid subscribers for the first time, reporting a record-breaking 19 million new subscribers in Q4 2024, culminating in a total of 302 million paid memberships for the year. This impressive 41 million subscriber increase for the full year marks a significant milestone, although Netflix states this will be their last quarterly subscriber report, opting instead for announcements at key milestones.

However, this positive news comes with a price increase. Slightly over a year after its last price adjustment in 2023 (following increases in 2022 and incremental yearly increases averaging $1-$2 since 2014), Netflix is once again raising prices on most plans in the US, Canada, Portugal, and Argentina.

In their shareholder letter, Netflix justified the increase, stating that continued investment in programming and delivering enhanced member value necessitates occasional price adjustments to fuel further improvements. The company noted 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:

• 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 noteworthy addition is a new "extra member with ads" plan. According to Bloomberg and WSJ, this allows users on the ad-supported plan to add an extra member outside their household for an additional fee—a feature previously exclusive to standard and premium plans.

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