In its Q4 2024 earnings report, Netflix revealed a remarkable addition of 19 million subscribers, bringing its global user base to 302 million by the end of 2024. Alongside this growth, the streaming giant announced a price hike for several plans in key markets, including the US, Canada, Portugal, and Argentina.
Netflix reported a 16% year-over-year revenue increase in Q4 2024 or 19% when adjusted for foreign exchange rates. This financial momentum comes as the company seeks to balance its growing subscriber base with rising operational costs. The latest price adjustments affect the Standard, Premium, and Ad-Supported plans, alongside additional member options.
In the earnings release, the company said, “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.
To that end, we are adjusting prices today across most plans in the US, Canada, Portugal, and Argentina (which was already factored into the 2025 guidance we provided in October 2024).
In Q4, it accounted for over 55% of sign-ups in our ads countries, and membership on our ads plan grew nearly 30% quarter over quarter. Today we are introducing an Extra Member with Ads offering in 10 of the 12 countries where we have an ads plan to give our members additional choice and flexibility.”
- Ad-Supported Plan: Introduced in 2022 at $6.99/month, this tier sees its first-ever price increase to $7.99/month.
- Extra Member Options: Subscribers can now add an extra member to their plan for $6.99/month with ads or $8.99/month without ads.
The Standard Plan, now priced at $17.99/month, has seen a consistent increase since October 2023. Netflix discontinued its Basic Plan in 2023, simplifying its tier offerings. The Premium Plan, offering ultra-high-definition content and simultaneous streaming on more screens, has risen to $24.99/month.
The price hikes are part of Netflix’s strategy to boost average revenue per user while maintaining its competitive edge in a saturated streaming market. With over 300 million subscribers globally, Netflix continues to invest in premium content and new features, ensuring its offerings remain attractive despite rising costs.
As Netflix implements these changes, subscribers in the affected countries will need to reassess their plan choices. While the price increases may challenge some users, the availability of ad-supported and extra member tiers offers flexibility to suit diverse budgets.