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 quarterly addition of 19 million subscribers and a yearly increase of 41 million, marks a significant milestone. While this is the final quarter for which Netflix will report subscriber growth in this format, the company assures continued updates on key membership milestones.
However, this celebratory news comes with a caveat. Following price increases in 2022 and 2023, Netflix is once again raising prices on most of its plans in the U.S., Canada, Portugal, and Argentina. This latest adjustment, as explained in the shareholder letter, is attributed to continued investment in programming and efforts to enhance member value. The company stated that these price adjustments were already factored into their 2025 guidance provided in October 2024.
While the exact price increases weren't explicitly detailed in the letter, reports from The Wall Street Journal and Bloomberg suggest the following changes: the ad-supported plan will rise from $6.99 to $7.99 per month; the standard ad-free plan will increase from $15.49 to $17.99; and the premium tier will jump from $22.99 to $24.99.
A notable addition is a new "extra member with ads" plan. According to Bloomberg and WSJ, this allows users of the ad-supported plan to add an additional household member for a fee—a feature previously limited to standard and premium plans.
Despite the price hikes, Netflix’s financial performance remains strong. Quarterly revenue soared 16% year-over-year to $10.2 billion, mirroring the annual revenue growth of 16% to $39 billion. The company projects year-over-year revenue growth of 12% to 14% in 2025.
