Netflix has achieved a remarkable milestone by surpassing 300 million subscribers, a testament to its enduring appeal and growth. In its full year 2024 earnings report, the company disclosed that it concluded the fiscal year with 302 million paid subscribers, adding a record-breaking 19 million in the fourth quarter alone and a total of 41 million new subscribers throughout the year. This quarter marks the final time Netflix will report subscriber numbers, although the company has indicated it will continue to share updates on paid memberships when significant milestones are reached.
However, alongside this success, 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 began with the first hike in 2014. The company justified the price rise in its shareholder letter, stating, "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." Although the letter did not specify the exact price changes, reports from The Wall Street Journal and Bloomberg suggest 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. This feature was 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 projects a 12% to 14% year-over-year revenue growth for 2025, reflecting continued confidence in its business model and market position.
