Netflix Raises Prices Amid Record Subscriber Growth

Netflix capped off 2024 with a record-breaking quarter, surpassing 300 million paid subscribers for the first time. This achievement, fueled by a remarkable 19 million new subscribers in Q4 and a total of 41 million for the year, prompted another price increase. While Netflix states this will be its last reported subscriber growth quarter, they will continue announcing paid membership milestones.

This price hike, impacting most plans in the U.S., Canada, Portugal, and Argentina, follows similar increases in 2022 and 2023, and reflects a pattern of roughly $1-$2 annual price adjustments since 2014. Netflix justifies the increase by citing ongoing investment in programming and a commitment to delivering increased value for subscribers.

The shareholder letter, however, lacked specific details on the price adjustments. Reports from The Wall Street Journal and Bloomberg suggest the following changes: the ad-supported plan will increase from $6.99 to $7.99 per month; the standard ad-free plan will rise from $15.49 to $17.99; and the premium plan will jump from $22.99 to $24.99.

A noteworthy addition is a new "extra member with ads" plan. This allows users of the ad-supported tier to add an extra household member for an additional fee, a feature previously restricted to standard and premium plans.

Netflix's Q4 revenue reached $10.2 billion, a 16% year-over-year increase, mirroring the annual revenue growth to $39 billion. The company projects 12% to 14% year-over-year revenue growth in 2025.