Netflix Announces Yet Another Price Hike as it Adds a Record Number of New Subscribers

Netflix capped off 2024 with record-breaking subscriber growth, surpassing 300 million paid memberships for the first time. This achievement, fueled by a remarkable 19 million new subscribers in Q4 alone (a quarterly record) and a total of 41 million for the year, prompted another price increase. While this is the final quarter Netflix will report subscriber growth in this format, the company assures continued announcements upon reaching significant milestones.

This price hike, affecting most plans in the U.S., Canada, Portugal, and Argentina, comes just over a year after the last increase and follows a pattern of roughly $1-$2 annual adjustments since 2014. Netflix justifies the increase by citing ongoing investments in programming and a commitment to delivering enhanced value for subscribers. The shareholder letter states that these price adjustments will allow for further reinvestment in improving the Netflix experience.

Specific price changes remain unconfirmed by Netflix, but reports from The Wall Street Journal and Bloomberg suggest the following: the ad-supported plan will increase from $6.99 to $7.99 per month; the standard ad-free plan will rise from $15.49 to $17.99; and the premium plan will jump from $22.99 to $24.99.

A noteworthy addition is a new "extra member with ads" plan, allowing users on the ad-supported tier to add an extra household member for an additional fee. Previously, this feature was only available to standard and premium subscribers.

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