Netflix Achieves Record Subscriber Growth, Announces Price Increases
Netflix concluded 2024 with a record-breaking fourth quarter, surpassing 300 million paid subscribers for the first time. The streaming giant added a remarkable 19 million subscribers in Q4 alone, culminating in a total annual increase of 41 million. While this marks the last quarter for which Netflix will publicly report subscriber growth figures (future growth will only be announced at key milestones), the achievement is undeniably significant.
However, this milestone is accompanied by a price increase across most plans in the U.S., Canada, Portugal, and Argentina. This marks yet another price adjustment, following increases in 2023 and 2022, reflecting a pattern of roughly $1-$2 annual increases since 2014.
In its shareholder letter, Netflix justified the price hike by citing continued investment in programming and a commitment to delivering enhanced value to subscribers. The company stated that these price adjustments are necessary to reinvest in further improvements to the Netflix service. While the exact price increases weren't explicitly detailed in the letter, reports from The Wall Street Journal and Bloomberg suggest the following changes:
- Basic with Ads: $6.99 to $7.99 per month
- Standard: $15.49 to $17.99 per month
- Premium: $22.99 to $24.99 per month
A noteworthy addition is a new "extra member with ads" plan. This allows users subscribed to the ad-supported plan to add an additional household member for a fee, a feature previously restricted to standard and premium plans.
Netflix's Q4 revenue saw a 16% year-over-year increase, reaching $10.2 billion. Annual revenue also climbed 16% to $39 billion. The company projects revenue growth of 12% to 14% year-over-year in 2025.
