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Netflix has announced its financial results for the last quarter of 2024, and they leave us with two closely related news. First, in 2025 new price increase is coming in countries around the world such as the United States or Portugal. Second, the number of subscribers has increased dramaticallymuch more than expected in the company’s own projections, leaving the global total at 302 million customers.
The numbers. More specifically: in the United States the price for the standard plan with ads goes from $6.99 per month to $7.99, and from $15.49 per month to $17.99 in the standard plan. These are just some examples justified by the 19 million new subscribers that came to the platform in the fourth quarter of 2024. 9.8 million new subscribers were expected, so the results have far exceeded expectations, generating profits of 10.2 billion of dollars.
A little more. As Netflix explains, “as we continue to invest in programming and offer more value to our partners, we will occasionally ask them to pay a little more so we can reinvest and continue improving Netflix.” That is, they are going to raise prices whenever they can, having become de facto in one of the most expensive options on the streaming scene (and if we compare it with specific competitors like Prime Video, Netflix is a much more expensive option). However, he also knows that these increases have a limit.
Communication is over. Possibly, Netflix already knew this in 2024. It was then, in April, when he announced that the fourth quarter of 2024, for which we have just received the data, would be the last in which Netflix would talk about the number of subscribers. From now on, apart from the audience and viewing figures that it will continue to communicate a couple of times a year, it will provide other types of data (profits, growth, budget), and will only report key subscriber figures when they are crossed. That is to say, very publicizable round numbers: possibly we will not hear about the subject again until they cross the threshold of 400 or 500 million subscribers.
The ceiling is hit. What does this decision mean? Possibly, Netflix has calculated that it cannot grow much more (hence the surprise that the platform itself recognized at an increase in subscribers greater than calculated). They will stop communicating those numbers so as not to give the impression that their growth is being hindered, especially since Netflix’s growth points in other directions. The main one is the economic one: Netflix can increase its profits, and hence the price increase, as well as the recent measures that we have seen in recent months: ending shared accounts, tiers with ads… the Netflix bubble is far from exploding, but it has to diversify.
Video games and more. At this time he is developing strategies such as his still timid, but increasingly clear intention to enter the video game industrywhich show that Netflix has no choice but to see its growth slow down in its original business, but that does not prevent it from becoming a diverse and multi-tentacled monster. It has also already announced that it will slightly increase its budget for creating programs (from 17,000 to 18,000 million dollars), in something that also has a declaration of intent: it is not going to slow down in its race to become one of the main audiovisual producers. . Who can deny that he is achieving it? Thanks to ‘Emilia Pérez’ she will surely become one of the most nominated producers for this year’s Oscars.
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