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

Netflix has achieved a significant milestone by crossing the 300 million subscriber mark, ending the fiscal year 2024 with an impressive 302 million paid subscribers. The company added a record-breaking 19 million subscribers in the fourth quarter alone, and a total of 41 million for the entire year. This quarter marks the last time Netflix will report subscriber growth, although they plan to announce paid memberships as they reach key milestones in the future.

Alongside this achievement, Netflix has announced a price increase for most of its plans in the U.S., Canada, Portugal, and Argentina. This move comes just over a year after the last price hike in 2023, and follows a pattern of annual increases dating back to the first hike in 2014. In their letter to shareholders, Netflix explained, "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 price adjustments have already been factored into the company's 2025 guidance.

While the exact details of the price increases were not specified in the shareholder letter, reports from The Wall Street Journal and Bloomberg indicate that the ad-supported tier will rise from $6.99 to $7.99 per month, the standard ad-free plan will increase from $15.49 to $17.99 per month, and the premium tier will go from $22.99 to $24.99 per month. Additionally, Netflix has 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 limited to standard or premium plans.

Netflix's financial performance for the quarter showed a 16% year-over-year increase in revenue, reaching $10.2 billion. The annual revenue also rose by 16% to $39 billion. Looking ahead, the company forecasts a year-over-year growth of between 12% and 14% for 2025.