Netflix capped off 2024 with a record-breaking quarter, surpassing 300 million paid subscribers for the first time. This achievement, fueled by a remarkable 19 million new subscribers in Q4 and a total of 41 million for the year, prompted another price increase. While this marks the final quarter Netflix will report subscriber growth in this format, the company assures continued announcements at key milestones.

This price adjustment, detailed in the shareholder letter, follows increases in 2022 and 2023, reflecting a pattern of roughly $1-$2 annual price hikes since 2014. Netflix justifies the increase by citing continued investment in programming and a commitment to delivering enhanced value to its members. The letter itself doesn't specify the exact price changes, but reports from The Wall Street Journal and Bloomberg indicate the following adjustments: the ad-supported plan rising from $6.99 to $7.99, the standard ad-free plan increasing from $15.49 to $17.99, and the premium plan climbing from $22.99 to $24.99.

A noteworthy addition is a new "extra member with ads" plan, allowing users of the ad-supported tier to add an extra household member for an additional fee. This expands the extra member option beyond standard and premium plans.

Netflix's Q4 revenue soared 16% year-over-year to $10.2 billion, mirroring the annual revenue growth of 16% to $39 billion. The company projects a 12% to 14% year-over-year revenue growth in 2025.