Netflix Announces Yet Another Price Hike as it Adds a Record Number of New Subscribers

Netflix capped off 2024 with record-breaking subscriber growth, surpassing 300 million paid memberships for the first time. This achievement, fueled by a quarterly addition of 19 million subscribers and a full-year increase of 41 million, prompted a celebratory—yet expected—price adjustment. While Netflix states it will continue to announce paid membership milestones, this marks the last quarter reporting subscriber growth figures.

This latest price hike, impacting most plans in the U.S., Canada, Portugal, and Argentina, follows similar increases in 2023 and 2022. The company justified the move in its shareholder letter, citing continued investment in programming and a commitment to delivering enhanced value to its members. This price adjustment, already factored into their 2025 guidance, aims to fuel further improvements to the Netflix service.

While the letter didn't specify exact price increases, reports from The Wall Street Journal and Bloomberg suggest the following changes: the ad-supported plan will rise from $6.99 to $7.99; the standard ad-free plan will increase from $15.49 to $17.99; and the premium plan will jump from $22.99 to $24.99.

A noteworthy addition is a new "extra member with ads" plan. This allows users of the ad-supported plan to add an extra household member for an additional fee—a feature previously limited to standard and premium subscribers.

Netflix's strong financial performance mirrored its subscriber growth. Q4 revenue soared 16% year-over-year to $10.2 billion, and annual revenue also increased by 16% to $39 billion. The company projects 12% to 14% year-over-year revenue growth in 2025.