Netflix Achieves Record Subscriber Growth, Announces Price Increases
Netflix reported record-breaking subscriber growth in Q4 2024, surpassing 300 million paid subscribers for the first time. This surge, adding 19 million subscribers in the quarter and a total of 41 million for the year, marks a significant milestone. While this is the last quarter Netflix will report subscriber numbers in this format, they will continue to announce paid memberships upon reaching key milestones.
However, this positive news is accompanied by a price increase across most plans in the U.S., Canada, Portugal, and Argentina. This marks another price adjustment, following increases in 2023 and 2022, reflecting a pattern of roughly $1-$2 annual price hikes since 2014. Netflix justifies this increase by citing continued investment in programming and a commitment to delivering enhanced value to subscribers. The shareholder letter states that these price adjustments are necessary for reinvestment and further improvements to the Netflix service. The letter did not specify the exact price increases.
Reports from The Wall Street Journal and Bloomberg suggest the following price 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 noteworthy addition is a new "extra member with ads" plan. This allows users with the ad-supported plan to add an extra member outside their household for an additional fee, a feature previously limited to standard and premium plans.
Despite the price increases, Netflix's Q4 revenue saw a 16% year-over-year increase, reaching $10.2 billion. Annual revenue also climbed 16% to $39 billion. The company projects 12% to 14% year-over-year revenue growth in 2025.
