Netflix has achieved a remarkable milestone by surpassing the 300 million subscriber mark once again, with a record-breaking quarter of new subscriber growth. The company ended its fiscal year 2024 with 302 million paid subscribers, adding an impressive 19 million in the fourth quarter alone and a total of 41 million for the entire year. This quarter marks the last time Netflix will report subscriber numbers, although the company plans to announce paid memberships when significant milestones are reached.
In celebration of this achievement, Netflix has announced a price increase for most of its plans in the United States, Canada, Portugal, and Argentina. This decision comes just over a year after the last price hike in 2023, following a pattern of increases that began in 2014. The company justifies these adjustments by emphasizing its ongoing investment in programming and the value it aims to deliver to its members.
According to the shareholder letter, Netflix 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." The price hikes, which were factored into the 2025 guidance provided in October 2024, will affect most plans across the mentioned regions. Although specific details were not provided in the letter, reports from The Wall Street Journal and Bloomberg indicate that the ad-supported tier will rise from $6.99 to $7.99 per month, the standard ad-free plan will increase from $15.49 to $17.99 per month, and the premium tier will go from $22.99 to $24.99 per month.
Additionally, Netflix has introduced a new "extra member with ads" plan. This allows individuals on an ad-supported plan to add someone outside their household to their existing plan for an additional fee, a feature previously available only to standard and premium plan subscribers.
Financially, Netflix reported a 16% year-over-year increase in quarterly revenue, reaching $10.2 billion, and a similar rise in annual revenue to $39 billion. The company forecasts a growth of between 12% and 14% in revenue for the year 2025.
