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 second time, hitting a record 302 million by the end of 2024, with a remarkable 19 million added in Q4 alone and 41 million for the entire year. While this marks the last quarter for official subscriber growth reporting (future announcements will be limited to key milestones), the company simultaneously announced price increases across most plans in the U.S., Canada, Portugal, and Argentina.

This price adjustment, detailed in a shareholder letter, follows similar increases in 2023 and 2022, reflecting Netflix's ongoing investment in programming and a commitment to enhancing member value. The letter stated that these price changes were already factored into the 2025 financial guidance released in October 2024.

While the exact price increases weren't explicitly stated in the letter, reports from The Wall Street Journal and Bloomberg indicate the following adjustments:

• 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. 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.

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