Netflix Reports Subscriber Surge in 2024 and Announces Price Increases

Netflix experienced significant growth in 2024, adding millions of new subscribers and exceeding analysts’ earnings expectations. However, the company also announced price hikes for its U.S. subscription plans.

Starting soon, U.S. subscribers will see the following price changes:

• The standard plan (no ads) will increase from $15.49 to $17.99 per month.
• The ad-supported plan will rise from $6.99 to $7.99 per month.
• The premium plan will go from $22.99 to $24.99 per month.

In a letter to investors, Netflix explained the decision:
“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 reinvest to further improve Netflix.” The price adjustments will also apply to plans in Canada, Portugal, and Argentina, as already outlined in the company’s October 2024 guidance.

The holiday season was especially strong for Netflix, with the company adding 19 million subscribers during the quarter. Key drivers of this growth included live events such as the November boxing match between Jake Paul and Mike Tyson, two NFL games on Christmas Day, and the release of the second season of the hit series Squid Game.

Netflix reported impressive financial results for the quarter:

• Earnings reached $1.9 billion, or $4.27 per share, nearly double the amount from the same period in 2023.
• Revenue grew by 16% year-over-year, reaching $10.2 billion.

By the end of 2024, Netflix had surpassed 300 million subscribers, a 41 million increase from the previous year. Along with the U.S., subscription prices are set to rise in Canada, Portugal, and Argentina as part of Netflix’s global strategy.