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

Netflix capped off 2024 with a record-breaking quarter, surpassing 300 million paid subscribers for the first time. This milestone, fueled by a record 19 million new subscribers in Q4 and a total of 41 million for the year, is celebrated with… another price increase. While Netflix states this will be its last subscriber growth report (though they will continue announcing milestones), the news comes with a price hike affecting most plans in the U.S., Canada, Portugal, and Argentina.

This marks yet another price adjustment for the streaming giant, following increases in 2023 and 2022, and a consistent pattern of roughly $1-$2 annual increases since 2014. Netflix justifies the increase by citing continued investment in programming and a commitment to delivering greater value to its members. The shareholder letter notes that these price adjustments were already factored into their 2025 guidance.

While the exact price increases weren't explicitly detailed in the letter, reports from The Wall Street Journal and Bloomberg suggest the following changes: 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; and the premium tier 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 plans.

Despite the price hike, Netflix reported strong financial results. Q4 revenue surged 16% year-over-year to $10.2 billion, with annual revenue also up 16% to $39 billion. The company projects 12% to 14% year-over-year revenue growth in 2025.