Netflix has recently celebrated a monumental achievement by surpassing the 300 million subscriber mark, adding a record-breaking 19 million new subscribers in the fourth quarter of 2024, culminating in a total of 302 million paid members. This surge represents an annual increase of 41 million subscribers, underscoring the platform's robust growth. In a significant shift, this will be the final quarter in which Netflix reports subscriber numbers, although the company has indicated that it will continue to share updates on paid memberships as it reaches notable milestones.
However, amidst the celebration of this growth, Netflix has announced yet another round of price increases across its plans in the U.S., Canada, Portugal, and Argentina. This adjustment comes just over a year after the last price hike in 2023 and follows a pattern of annual increases that date back to 2014. The company justified these changes in a letter to shareholders, stating that the hikes are necessary to fund further investments in programming and to enhance the value delivered to members.
The specifics of the price adjustments were not detailed in the shareholder letter, but reports from The Wall Street Journal and Bloomberg have shed light on the expected changes. The ad-supported plan will see an increase from $6.99 to $7.99 per month, the standard ad-free plan will rise from $15.49 to $17.99, and the premium plan will go up from $22.99 to $24.99. Additionally, Netflix introduced a new "extra member with ads" option, allowing users on the ad-supported plan to add someone outside their household for an additional fee, a feature that was previously exclusive to standard and premium plans.
Financially, Netflix reported a 16% year-over-year increase in quarterly revenue, reaching $10.2 billion, and a similar annual revenue growth to $39 billion. Looking ahead, the company anticipates a revenue growth of between 12% and 14% for the year 2025.
