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. This follows a record-breaking fourth quarter with 19 million new subscribers, adding to a total of 41 million new subscribers for the year. While this marks the last quarter for which Netflix will report subscriber growth figures (though they will continue to announce milestones), the achievement is coupled with another price increase.
This marks the latest in a series of price hikes, following increases in 2023 and 2022, and smaller annual increases dating back to 2014. The company justifies the increase by citing continued investment in programming and a commitment to delivering increased value to subscribers. The price adjustments will affect most plans in the U.S., Canada, Portugal, and Argentina. These adjustments were already anticipated in the company's October 2024 guidance.
While the exact price increases weren't specified in the shareholder letter, reports from The Wall Street Journal and Bloomberg suggest the following changes:
- 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 additional household member for a fee, a feature previously limited to standard and premium plans.
Netflix's Q4 revenue reached $10.2 billion, a 16% year-over-year increase. Annual revenue also saw a 16% increase, reaching $39 billion. The company projects 12% to 14% year-over-year revenue growth in 2025.
