Netflix Raises Prices Amid Record Subscriber Growth

Mar 14,25

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 Netflix states this will be their last quarter reporting subscriber growth numbers, they will continue to announce paid membership milestones.

This price hike, affecting most plans in the U.S., Canada, Portugal, and Argentina, follows previous increases in 2023 and 2022, reflecting a pattern of roughly $1-$2 annual price adjustments since 2014. Netflix justified the increase in their shareholder letter, stating the need to reinvest in programming and enhance member value. The letter, however, didn't specify the exact price changes.

Reports from The Wall Street Journal and Bloomberg suggest the following price adjustments: the ad-supported plan rising from $6.99 to $7.99 per month, the standard ad-free plan increasing from $15.49 to $17.99, and the premium plan climbing from $22.99 to $24.99.

A noteworthy addition is a new "extra member with ads" plan. This allows users on the ad-supported tier to add an extra household member for an additional fee—a feature previously exclusive to standard and premium plans.

Netflix's Q4 revenue reached $10.2 billion, a 16% year-over-year increase, mirroring the annual revenue growth to $39 billion. The company projects 12% to 14% year-over-year revenue growth in 2025.

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