Netflix Achieves Record Subscriber Growth, Announces Price Increases
Netflix reported record-breaking subscriber growth in Q4 2024, surpassing 300 million paid subscribers for the first time. The company ended the year with 302 million paid subscribers, adding a staggering 19 million in the final quarter and a total of 41 million for the full year. While this marks the last quarter Netflix will report subscriber growth in this format, they will continue to announce milestones.
This impressive growth coincides with another price increase across most of its plans in the U.S., Canada, Portugal, and Argentina. This marks the latest in a series of price adjustments, 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 increased value for subscribers. The company stated that these price adjustments are necessary to reinvest in improving the Netflix experience.
Reports from The Wall Street Journal and Bloomberg suggest the following price 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 significant new addition is an "extra member with ads" plan. This allows users of 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, with annual revenue also up 16% to $39 billion. The company projects 12% to 14% year-over-year revenue growth in 2025.
