Netflix Raises Prices Again Amid Record Subscriber Growth

Netflix has recently celebrated reaching a new milestone by surpassing 300 million subscribers, adding a record 19 million in the fourth quarter alone and a total of 41 million new subscribers throughout 2024. This achievement marks the last time Netflix will report quarterly subscriber numbers, as the company plans to only announce paid memberships when significant milestones are reached.

Despite the celebratory news, Netflix announced a price increase across most of its plans in the U.S., Canada, Portugal, and Argentina. This follows a pattern of annual price adjustments, with the last increase occurring in 2023. The company justified these hikes in its shareholder letter, stating that the additional revenue would be reinvested to enhance the value provided to its members through improved programming.

The specifics of the price changes, although not detailed in the shareholder letter, have been reported by The Wall Street Journal and Bloomberg. The ad-supported plan is set to 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 an extra member from outside their household for an additional fee—a feature previously exclusive to standard and premium plans.

Financially, Netflix reported a 16% increase in quarterly revenue, reaching $10.2 billion, and a similar annual growth to $39 billion. The company anticipates a revenue growth of between 12% and 14% for the year 2025.