Netflix has announced an increase in subscription prices following a record surge in subscribers. During its Q4 2024 earnings call, the company confirmed that the ad-supported plan will rise to $7.99 from $6.99, while ad-free plans will see increases of at least $2.
This adjustment, the first since October 2023, will affect customers worldwide, focusing on the U.S. and Canada, where Netflix generates its highest revenue per user.
302 Million Subscribers Growth
Netflix wrapped up 2024 with 302 million global subscribers, adding 19 million new members in the final quarter. The growth surpassed analyst predictions, reinforcing Netflix’s dominance in the streaming sector.
The U.S. and Canada were central to the rise, with paid memberships increasing to 89.63 million from 84.80 million in Q3. In tandem with this success, Netflix announced it would no longer regularly release subscriber figures, except when crossing major thresholds.
Subscription Price Increases
The rise in Netflix subscription prices reflects the company’s efforts to enhance its services while driving revenue growth. The ad-supported plan will now cost $7.99 per month, and ad-free memberships will face tier-dependent increases starting at $2.
This pricing change comes as Netflix continues investing in both content and technology. Co-CEO Greg Peters underscored the importance of evolving its ad capabilities, saying,
“You can say that 2025 is the year that we transition from crawl to walk. A big part of that is standing up our own ad stack.”
High-Profile Content Fuels Growth
Netflix’s subscriber growth surged thanks to a string of high-profile releases. The highly anticipated second season of Squid Game became a major driver of the platform’s success, with Netflix expecting it to become one of its most-watched seasons.
The action thriller Carry-On also ranked as one of the quarter’s top-performing movies. Meanwhile, Netflix’s investment in live programming paid off, as the Jake Paul vs. Mike Tyson boxing match became “the most-streamed sports event in history.” NFL games on Christmas Day attracted between 30 and 31 million viewers.
Netflix attributed its impressive subscriber growth to a series of high-profile releases. The second season of Squid Game was a key contributor, with Netflix predicting it to become one of its most-watched seasons. The action-packed thriller Carry-On also ranked among the platform’s top-performing films for the quarter.
Additionally, the company’s foray into live programming proved successful, with the Jake Paul vs. Mike Tyson boxing match becoming “the most-streamed sports event in history.”
NFL games aired on Christmas Day drew between 30 and 31 million viewers, bolstered by a halftime show featuring Beyoncé.
The Rise of the Ad-Supported Plan
Netflix’s ad-supported tier is proving to be a major growth driver, with over 55% of sign-ups in countries offering the option choosing the ad-supported plan in Q4. This membership category saw a 30% increase from the previous quarter, highlighting its growing appeal.
The company is also ramping up its investment in ad technology, having launched an in-house ad-tech platform in Canada in 2024, with plans to expand it to the U.S. by April 2025. The new platform aims to provide advertisers with more effective tools, supporting Netflix’s push to grow ad revenue.
Investing in Live Programming and Sports
Netflix is betting on live programming and sports to expand its content offering, with promising results so far. WWE Raw’s debut on the platform garnered 5 million views, more than doubling its traditional TV audience.
, Netflix has secured exclusive broadcasting rights for the 2027 and 2031 FIFA Women’s World Cup. The streaming giant also unveiled a new feature, Extra Member with Ads, letting subscribers in 10 countries add extra users for $6.99 per month.