Netflix Achieves Record Subscriber Growth, Announces Price Increases
Netflix concluded 2024 with a record-breaking fourth quarter, surpassing 300 million paid subscribers for the first time. This achievement, marked by a remarkable 19 million new subscribers in Q4 and a total of 41 million for the year, prompted the company to announce another price increase. While this is the final quarter for which Netflix will report subscriber growth figures, they intend to continue announcing paid membership milestones.
Despite the positive subscriber numbers, Netflix subtly revealed a price hike in its shareholder letter – a relatively small increase, but consistent with a pattern of annual price adjustments since 2014. The company justified the increase by citing continued investment in programming and a commitment to delivering enhanced value for subscribers. The price adjustments will impact most plans in the U.S., Canada, Portugal, and Argentina.
While the exact price increases weren't specified in the shareholder letter, reports from The Wall Street Journal and Bloomberg suggest the following changes:
- Basic with Ads: $6.99 to $7.99 per month
- Standard (ad-free): $15.49 to $17.99 per month
- Premium: $22.99 to $24.99 per month
A significant addition is a new "extra member with ads" plan. This allows users on the ad-supported plan to add an extra member outside their household for an additional fee, a feature previously restricted to standard and premium plans.
Netflix's Q4 revenue soared to $10.2 billion, a 16% year-over-year increase, mirroring the annual revenue growth of 16% to $39 billion. The company projects a 12% to 14% year-over-year revenue increase for 2025.
