Netflix Hikes Prices Amid Record Subscriber Growth

Netflix has recently celebrated a monumental achievement by surpassing the 300 million subscriber mark, culminating the year 2024 with a record-breaking 302 million paid subscribers. The company added an impressive 19 million subscribers in the fourth quarter alone, contributing to a yearly total increase of 41 million. This quarter marks the final time Netflix will report subscriber numbers, though the company plans to continue sharing paid membership figures as they reach significant milestones.

However, alongside this success, Netflix has announced a price increase for most of its plans in the U.S., Canada, Portugal, and Argentina. This adjustment comes just over a year after the last price hike in 2023, and follows a pattern of annual increases dating back to 2014. The company justifies these changes in its shareholder letter, stating, "As we continue to invest in programming and deliver more value for our members, we will occasionally ask our members to pay a little more so that we can re-invest to further improve Netflix."

While the exact details of the price adjustments were not specified in the shareholder letter, reports from The Wall Street Journal and Bloomberg indicate that the ad-supported tier will increase from $6.99 to $7.99 per month, the standard ad-free plan will rise from $15.49 to $17.99 per month, and the premium tier will go from $22.99 to $24.99 per month.

In addition to the price hikes, Netflix has introduced a new "extra member with ads" plan. This allows individuals on an ad-supported plan to add someone outside their household for an additional fee, a feature previously exclusive to standard or premium plans.

Financially, Netflix reported a 16% year-over-year increase in quarterly revenue, reaching $10.2 billion, and a similar rise in annual revenue to $39 billion. Looking ahead, the company forecasts a 12% to 14% year-over-year growth in 2025.