Netflix capped off 2024 with a record-breaking quarter, surpassing 300 million paid subscribers for the first time. This achievement, fueled by a staggering 19 million new subscribers in Q4 and a total of 41 million for the year, prompted another price increase. While Netflix states this will be its last reported subscriber growth update (though they will announce milestones), the company announced price hikes across most plans in the U.S., Canada, Portugal, and Argentina.
This price adjustment follows similar increases in 2022 and 2023, reflecting a pattern of roughly $1-$2 annual price bumps since 2014. Netflix justified the increase in its shareholder letter, citing continued investment in programming and a commitment to delivering increased member value. The letter, however, lacked specific details on the price changes.
Reports from The Wall Street Journal and Bloomberg suggest the following price adjustments: the ad-supported plan rising from $6.99 to $7.99, the standard ad-free plan increasing from $15.49 to $17.99, and the premium tier jumping from $22.99 to $24.99. These reports also indicate a new "extra member with ads" plan, allowing ad-supported subscribers to add an additional household member for a fee—a feature previously exclusive to standard and premium plans.
Despite the price hikes, Netflix reported strong financial results. Q4 revenue reached $10.2 billion, a 16% year-over-year increase, mirroring the annual revenue growth to $39 billion. The company projects 12% to 14% year-over-year revenue growth in 2025.
