Netflix's New Chapter Means Price Hikes and Record-High Subscriber Growth The streaming giant reported a record-high jump in subscribers in the final quarter of 2024.
By Sherin Shibu Edited by Melissa Malamut
Key Takeaways
- Netflix raised subscription prices on Tuesday.
- The streaming giant also reported a record-high addition of 18.9 million paid subscribers for the final quarter of 2024.
- According to the shareholder letter, Netflix was able to score some streaming wins with the Jake Paul vs. Mike Tyson fight and NFL games.
Netflix announced that it's raising subscription prices again—and that it will no longer reveal subscriber numbers on its quarterly reports.
"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," Netflix wrote in a letter to shareholders.
The standard membership with ads will increase from $6.99 to $7.99, the standard monthly membership without ads will increase from $15.49 to $17.99, and the highest-tier membership with 4K video will jump from $22.99 to $24.99. The price increases take effect on Tuesday.
Netflix last raised prices for its standard plan without ads in January 2022.
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This ushers in a new chapter for the company, as the streaming giant also disclosed Tuesday that it added a record-high number of subscribers for the final quarter of 2024, nearly double analyst projections.
According to Barron's, Netflix gained 18.9 million paid memberships in the three months ending in December, the biggest jump in subscription additions in its history and above projections of 9.8 million paid subscriptions for the quarter.
Netflix finished 2024 with 304 million subscribers.
The streaming giant is no longer sharing subscriber numbers as part of its quarterly reports after this one. According to a previous letter to investors in the first quarter of 2024, Netflix says the change is part of its evolution.
"As we've evolved our pricing and plans from a single to multiple tiers with different price points depending on the country, each incremental paid membership has a very different business impact," the letter reads. "It's why we stopped providing quarterly paid membership guidance in 2023. [Starting] with our Q1'25 earnings, we will stop reporting quarterly membership numbers and ARM [average revenue per member]."
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Netflix's success is due to its selection of popular shows and movies. According to the shareholder letter, the show Squid Game season two is fast becoming one of Netflix's most-watched original seasons, the Jake Paul vs. Mike Tyson fight was the most-streamed sporting event ever, and Netflix delivered the two most-streamed NFL games in history live on Christmas Day.
Netflix is planning to continue the momentum in 2025 by releasing new seasons of its biggest shows, including Squid Game, Wednesday, and Stranger Things.
Still, Netflix isn't resting on its laurels.
"We believe we account for less than 10% of TV viewing in every country in which we operate, all of which suggests a long runway for growth as streaming continues to expand around the world," Netflix wrote in its most recent shareholder letter.
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