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 and 41 million for the full year, culminating in a total of 302 million paid memberships. While this marks the final quarter of reported subscriber growth (though the company will continue to announce milestones), it also coincides with another price increase.

This price hike, affecting most plans in the U.S., Canada, Portugal, and Argentina, comes just over a year after the last increase in 2023, following similar increases in 2022 and prior years. Netflix justified the increase in its shareholder letter, stating that continued investment in programming requires occasional price adjustments to reinvest in service improvements.

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 (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, allowing users of the ad-supported tier to add an additional household member for a fee. Previously, this feature was restricted to standard and premium plans.

Despite the price increase, Netflix reported strong financial results. Q4 revenue reached $10.2 billion, a 16% year-over-year increase, mirroring the annual revenue growth of $39 billion. The company projects 12% to 14% year-over-year revenue growth in 2025.