Streaming Giant Netflix Raises Prices Amidst Subscriber Surge

Netflix Achieves Record Subscriber Growth, Announces Price Increases

Netflix celebrated surpassing 300 million paid subscribers for the first time, hitting a record 302 million by the end of 2024. This success, fueled by a record-breaking 19 million new subscribers in Q4 and 41 million for the entire year, comes with a price increase. While this marks the last quarter Netflix will formally report subscriber growth figures, the company will continue to announce key membership milestones.

However, this positive news is accompanied by a price hike across most plans in the US, Canada, Portugal, and Argentina. This is Netflix's latest price adjustment, following increases in 2023 and 2022, and consistent with its history of roughly $1-$2 annual increases since 2014.

In a shareholder letter, Netflix justified the price increase, stating that continued investment in programming and member value necessitates occasional price adjustments to fuel further improvements. The letter, however, didn't specify the exact price changes.

Reports from The Wall Street Journal and Bloomberg suggest the following adjustments:

• Basic with Ads: $6.99 to $7.99 per month
• Standard: $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 additional household member for a fee—a feature previously exclusive to standard and premium plans.

Despite the price increases, Netflix reported strong financial results. Q4 revenue surged 16% year-over-year to $10.2 billion, mirroring the annual revenue growth to $39 billion. The company projects 12% to 14% year-over-year revenue growth in 2025.