Netflix has achieved a significant milestone by surpassing 300 million subscribers, culminating in a record-breaking quarter with an addition of 19 million new subscribers in Q4, bringing the total to 302 million paid subscribers by the end of the fiscal year 2024. This impressive growth of 41 million subscribers throughout the year marks the last time Netflix will report such figures, as the company shifts its focus away from quarterly subscriber updates, opting instead to announce paid memberships at key milestones.
However, this celebration comes with a caveat: Netflix has announced yet another round of price increases across most of its plans in the U.S., Canada, Portugal, and Argentina. This decision follows closely on the heels of a price hike in 2023, and continues a trend of annual increases that began in 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 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 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 robust performance with a 16% year-over-year increase in quarterly revenue, reaching $10.2 billion, and a similar rise in annual revenue to $39 billion. Looking ahead, the company forecasts a growth rate of between 12% and 14% for the year 2025.
