Netflix Raises Prices Again Amid Record Subscriber Growth

Netflix has reached a new milestone, surpassing 300 million subscribers once again, following a record-breaking quarter of new subscriber growth. In its full-year 2024 earnings report, the streaming giant disclosed it ended the year with 302 million paid subscribers, having added a record 19 million in the fourth quarter alone and a total of 41 million for the entire year. This marks the last time Netflix will report quarterly subscriber growth, although it plans to announce paid memberships at key milestones in the future.

However, amidst these celebratory figures, Netflix announced another round of price increases across most of its plans in the U.S., Canada, Portugal, and Argentina. This marks the latest in a series of price hikes, with the last increase occurring just over a year ago in 2023, following adjustments in 2022 and yearly increments averaging $1 to $2 since the initial hike in 2014.

In its letter to shareholders, Netflix justified the price adjustments by 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." The company noted that these changes were already factored into its 2025 guidance provided in October 2024. Although specific details about the price hikes were not disclosed in the 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.

Additionally, Netflix introduced a new "extra member with ads" plan, allowing individuals on an ad-supported plan to add someone outside their household for an additional fee. Previously, this option was only available for standard or premium plan subscribers.

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. The company forecasts a 12% to 14% year-over-year growth for 2025, reflecting continued confidence in its business model and market position.