Netflix has just celebrated crossing the 300 million subscriber milestone, reporting a record-breaking addition of 19 million new subscribers in the fourth quarter of 2024, culminating in a total of 302 million paid subscribers by the end of the fiscal year. This surge marked a full-year increase of 41 million subscribers, highlighting a significant achievement for the streaming giant. However, this will be the last quarter where Netflix reports subscriber growth figures, as the company plans to only announce paid memberships when reaching key milestones moving forward.
Amidst this celebration, Netflix announced a price increase for most of its plans in the U.S., Canada, Portugal, and Argentina. This adjustment comes just over a year after the last price hike in 2023, continuing a trend of annual increases that started with the first hike in 2014. The company justified these changes in its shareholder letter, stating that the price adjustments are necessary to continue investing in programming and enhancing member value.
Although the exact details of the price hikes were not specified in the shareholder letter, reports from The Wall Street Journal and Bloomberg indicate that the ad-supported plan 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 plan 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. The company anticipates a revenue growth of between 12% and 14% for the year 2025.
