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's fiscal year. This impressive growth, fueled by a record-breaking 19 million new subscribers in Q4 and 41 million for the entire year, will be the last quarterly subscriber count reported publicly, although the company will continue announcing membership milestones.
However, this positive news is coupled with a price hike. Slightly over a year after the last price increase in 2023 (following similar increases in 2022 and prior years), Netflix is once again raising prices on most of its plans in the U.S., Canada, Portugal, and Argentina. This increase, according to the company's shareholder letter, is to fund continued investment in programming and enhance member value. The letter, however, didn't specify the exact price changes.
Multiple news outlets, including The Wall Street Journal and Bloomberg, report the following price adjustments:
- 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 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 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, with annual revenue also up 16% to $39 billion. The company projects 12% to 14% year-over-year revenue growth in 2025.
