Netflix Raises Prices Again Amid Record Subscriber Growth

Netflix has recently celebrated a monumental achievement, surpassing the 300 million subscriber mark once again, with a record-breaking quarter that saw the addition of 19 million new subscribers in Q4 alone, culminating in a total of 302 million paid subscribers by the end of the fiscal year 2024. This impressive growth of 41 million subscribers throughout the year marks the last time Netflix will report such figures, as the company shifts its focus away from regular subscriber updates, though it will continue to share milestones related to paid memberships.

In tandem with this growth, Netflix announced a price increase across most of its plans in the United States, Canada, Portugal, and Argentina. This marks another adjustment in pricing, following hikes in 2023 and 2022, and a pattern of annual increases dating back to 2014. The company justified 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 hikes were not specified in the letter, reports from The Wall Street Journal and Bloomberg indicate that the ad-supported tier will rise from $6.99 to $7.99 per month, the standard ad-free plan will increase 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 extra fee, a feature previously exclusive to standard and premium plans.

Financially, Netflix reported a robust performance with a 16% year-over-year increase in quarterly revenue, reaching $10.2 billion, and an annual revenue increase to $39 billion. Looking ahead, the company forecasts a growth rate of between 12% and 14% for the year 2025.