Fresh off of record-breaking subscription growth, Netflix is raising its prices—again.
The streamer, which reported a record 302 million subscribers worldwide during its Q424 earnings call on Tuesday, will increase the price of its ad-supported tier from $6.99/month to $7.99/month. The streamer’s ad-free memberships will also see price increases beginning at $2 per month, depending on the tier.
It’s the first time Netflix has raised prices since October 2023.
The price increases come as Netflix’s Q4 subscriber growth beat analyst expectations. The streamer added nearly 19 million new subscribers in the final quarter of 2024.
- In the United States and Canada, where Netflix makes the most money per member monthly, the streamer grew its paid memberships to 89.63 million, up from 84.80 million in Q3.
Be sure to mark those figures down: After this earnings call, Netflix will no longer announce subscriber numbers unless it crosses a major milestone, execs announced last year.
Netflix credited some of that growth to several high-profile originals, including the second season of Squid Game, which is slated to be one of the most-watched original seasons ever on the platform; the action thriller Carry-On, which was one of the platform’s most-watched movies; and continued investment in live programming like its Jake Paul vs. Mike Tyson fight and NFL programming.
- Viewers engage with Netflix content for an average of two hours a day per paid membership and watch an average of seven movies a month, according to the company’s quarterly letter to shareholders.
All about ads: On the ads side, more than 55% of Netflix sign-ups in Q4 in countries where Netflix’s ads tier is available were for its ads plan, according to the shareholder letter. Ad tier membership grew by almost 30% quarter over quarter, the company said. On an investor call, Netflix co-CEO Greg Peters highlighted the growth of the platform’s in-house ad-tech platform, which rolled out in Canada last year and is set to hit the US in April, which he said would help “deliver more critical capabilities to advertisers.”
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“You can say that 2025 is the year that we transition from crawl to walk,” he said. “A big part of that is standing up our own ad stack.”
As it grows its ads capabilities, the streamer also introduced Extra Member with Ads, a new option available in 10 countries that allows subscribers to add additional users for $6.99/month.
Do it live: Netflix’s extensive push into live programming in Q4 seemed to pay off for the streamer.The two NFL games it aired on Christmas Day, one of which included a performance by Beyoncé, averaged minute audiences of between 30 million and 31 million , co-CEO Ted Sarandos told investors Tuesday. The Paul-Tyson boxing match, meanwhile, became the most-streamed sports event in history, the company claimed.
Netflix also began airing WWE Raw earlier this month, which drew roughly 5 million views in its first week, about twice the audience it averaged on linear TV. There is more sports programming coming soon: last month, the streamer announced it had secured the exclusive rights to air the 2027 and 2031 FIFA Women’s World Cup.
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