Netflix Raises Prices Again Amidst Historic Subscriber Growth

Netflix Achieves Record Subscriber Growth, Announces Price Increases

Netflix concluded 2024 with a record-breaking fourth quarter, surpassing 300 million paid subscribers for the first time. The streaming giant added a remarkable 19 million subscribers in Q4 alone, bringing the total yearly increase to a record 41 million. While this marks the final quarter for which Netflix will report subscriber growth figures (though they will still announce key milestones), the achievement is coupled with another price adjustment.

This marks yet another price increase for Netflix, slightly over a year since the last hike in 2023. The company justifies the increase, stating in its shareholder letter that continued investment in programming and enhanced member value necessitates occasional price adjustments to fuel further improvements. This price adjustment affects most plans in the U.S., Canada, Portugal, and Argentina, factors already incorporated into the 2025 financial projections.

Specific price increases haven't been officially detailed by Netflix, but reports from The Wall Street Journal and Bloomberg suggest the following changes:

• Ad-supported plan: $6.99 to $7.99 per month
• Standard ad-free plan: $15.49 to $17.99 per month
• Premium plan: $22.99 to $24.99 per month

A noteworthy 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 restricted to standard and premium plans.

Despite the price increases, Netflix's financial performance remains robust. Q4 revenue surged 16% year-over-year to $10.2 billion, mirroring the annual revenue growth to $39 billion. The company projects 12% to 14% year-over-year revenue growth in 2025.