Netflix Announces Yet Another Price Hike as it Adds a Record Number of New Subscribers

Netflix capped off 2024 with record-breaking subscriber growth, surpassing 300 million paid memberships for the first time. This achievement, fueled by a quarterly addition of 19 million subscribers and a yearly surge of 41 million, prompted the company to announce another price increase. While this marks the final quarter Netflix will report subscriber growth in this format, they will continue announcing key membership milestones.

This price hike, affecting most plans in the U.S., Canada, Portugal, and Argentina, comes just over a year after the last increase. Netflix justifies the price adjustment, citing continued investment in programming and a commitment to delivering increased value to its members. The company stated in its shareholder letter that these price adjustments will allow for further reinvestment to improve the Netflix experience. Specific price increases weren't detailed in the letter, but reports from The Wall Street Journal and Bloomberg suggest the following changes: the ad-supported plan will rise from $6.99 to $7.99, the standard ad-free plan from $15.49 to $17.99, and the premium plan from $22.99 to $24.99.

A noteworthy 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.

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