Netflix Raises Prices Again Amid Record Subscriber Growth

Netflix recently celebrated reaching a new milestone of over 300 million subscribers, a record-breaking achievement highlighted in their full-year 2024 earnings report. The streaming giant concluded the fiscal year with 302 million paid subscribers, having added a record 19 million in the fourth quarter alone, and a total of 41 million new subscribers throughout the year. This marks the last time Netflix will report quarterly subscriber growth, though they plan to continue announcing paid memberships at significant milestones.

However, alongside this success, Netflix announced another round of price increases across most of its plans in the U.S., Canada, Portugal, and Argentina. This adjustment comes just over a year after their last price hike in 2023, continuing a trend that began with their first increase in 2014. In their letter to shareholders, Netflix justified the price hikes as necessary to fund further investments in programming and to enhance member value, 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 specifics of the price increases were not detailed in the shareholder letter, but reports from The Wall Street Journal and Bloomberg indicate that the ad-supported plan will rise from $6.99 to $7.99 per month, the standard ad-free plan from $15.49 to $17.99 per month, and the premium plan 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, 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 to $10.2 billion, and the same growth rate for annual revenue reaching $39 billion. Looking ahead, the company forecasts a 12% to 14% year-over-year revenue growth for 2025.