What you need to know
- Netflix posted its Q4 2024 revenue report, which states the company had a quarter fit for the record books with a 16% YoY growth to $10.2 billion.
- The key point of this report is Netflix's plans to increase prices in the U.S., Canada, and more, bringing a "popular" plan to $17.99 monthly.
- Netflix's Q4 2023 was also a "record-breaking" quarter and the company was prepared to raise prices shortly after that, too.
Netflix is delivering its typical end-of-quarter overview, giving us a look at how 2024 ended and what the future holds.
Netflix recently published its Q4 revenue report and highlights that this past quarter was one for the record books (via Bloomberg). The company states that its revenue had grown by 16% YoY (year over year), assisted by "19M paid net adds." It adds that its operating income rose by 52% YoY and that it finished 2024 with 302M subscribers.
The Q4 report says its performance in the previous quarter "outperformed" expectations. However, the folks at Bloomberg notes one key statement during the earnings call: prices are set to rise.
Despite such a record-breaking qurater for Netflix, the company is reportedly preparing to increase the price of its "most popular U.S. plan" by $2.50. The publication states the price of this plan — which could be the Standard Plan — will jump to $17.99 per month.
This reported price increase is apparently slated for the U.S., Canada, Argentina, and Portugal.
Reports adds that the company is also looking to increase the price of the "cheaper ad-supported" plan, too.
In its Q4 file, Netflix states it has factored in this planned pricing increase in the aforementioned countries in its 2025 outlook. The company says it's looking to maintain "healthy growth" in the new year and projects anywhere between $43.5 and 44.5 billion in generated revenue. Netflix estimates that its operating margin will also rise to 29%. It states that these numbers are the result of "improved business fundamentals," its record-breaking Q4 2024 numbers, and the strengthening of the U.S. dollar.
Netflix is also interested in developing more live programming and games in 2025. The fight between Jake Paul and Mike Tyson, as well as its Christmas Day NFL games were among the highlights. The report states that the football games streamed on Christmas were two of the "most streamed" games in NFL history.
Netflix has had a long history of price hikes for several of its subscriber plans — and for a few different countries. So, it feels like we're just living in a time loop, by this point. Regardless, following Netflix's other "record quarter" (Q4 2023), the company announced a price increase was inevitable for its users. The company increased the price of its Standard plan before, which brought it to $15.50, but that was because it phased out the old "Basic" plan.
Netflix also has the cheaper, ad-supported plan, which is seemingly where the company was to push people. At the time, Netflix said, "Scaling our ads business represents an opportunity to tap into significant new revenue and profit pools over the medium to longer term."
That report shed light on how much Netflix spent for its WWE Raw streaming program: $5 billion over a 10-year period, beginning in 2025. Even then, it felt like that money had to come from somewhere.
Since it looks like we're set for another definite price increase, all we're left with is the waiting room until it happens.
