Netflix Achieves Record Subscriber Growth, Announces Price Increases
Netflix celebrated surpassing 300 million paid subscribers for the first time, hitting a record 302 million by the end of 2024. This impressive growth, fueled by a record 19 million new subscribers in Q4 and 41 million for the year, prompted another price increase across most plans in the US, Canada, Portugal, and Argentina. While this marks the last quarter Netflix will officially report subscriber growth figures, the company assures continued updates upon reaching key milestones.
The price hike, detailed in a letter to shareholders, follows increases in 2023 and 2022, reflecting a pattern of roughly $1-$2 annual adjustments since 2014. Netflix justified the increase by citing ongoing investments in programming and a commitment to delivering enhanced value to subscribers. The shareholder letter, however, lacked specific details on the price changes.
Multiple news outlets, including The Wall Street Journal and Bloomberg, reported 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.
Netflix's Q4 revenue surged 16% year-over-year to $10.2 billion, with full-year revenue also up 16% to $39 billion. The company projects 12% to 14% year-over-year revenue growth in 2025.
