Netflix Raises Prices Amidst Subscriber Surge

Netflix Achieves Record Subscriber Growth, Announces Price Hikes

Netflix celebrated surpassing 300 million paid subscribers for the second time, hitting a record 302 million by the end of 2024, with a phenomenal 19 million additions in Q4 alone and a total yearly increase of 41 million. While this marks their final subscriber growth report (though they'll announce future milestones), the news is bittersweet.

The company simultaneously announced price increases across most of its plans in the U.S., Canada, Portugal, and Argentina. This follows previous price hikes in 2023 and 2022, reflecting a pattern of roughly $1-$2 annual increases since 2014.

Netflix justified the increases, stating in their shareholder letter that continued investment in programming and enhanced member value necessitates occasional price adjustments to fuel further improvements. The price changes in the mentioned countries were already anticipated in their October 2024 guidance.

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

• Ad-supported: $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 tier 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 reported strong financial results. 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.