Netflix Raises Prices Again Amid Record Subscriber Growth

Apr 04,25

Netflix recently achieved a remarkable milestone by surpassing 300 million subscribers, a testament to its robust growth in the streaming industry. In its full year 2024 earnings report, the company disclosed that it concluded the fiscal year with 302 million paid subscribers, having added a record-breaking 19 million in the fourth quarter alone. This represents an unprecedented annual increase of 41 million subscribers. Notably, this will be the last quarter that Netflix reports subscriber growth figures, although the company plans to continue sharing updates on paid memberships as significant milestones are reached.

Despite these impressive gains, Netflix announced another round of price increases across most of its plans in the U.S., Canada, Portugal, and Argentina. This decision comes just over a year after the last price hike in 2023, and follows a pattern of annual increases dating back to 2014. In its letter to shareholders, Netflix justified the price adjustments as necessary to fund ongoing investments in programming and to enhance member value. The company stated, "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."

While the shareholder letter did not specify the exact price changes, reports from The Wall Street Journal and Bloomberg indicate that the ad-supported tier will increase from $6.99 to $7.99 per month, the standard ad-free plan will rise from $15.49 to $17.99 per month, and the premium tier will go from $22.99 to $24.99 per month. Additionally, Netflix 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 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 forecasts a year-over-year growth of between 12% and 14% for 2025.

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