Netflix breaks records and raises prices again

The leading streaming platform makes more money than ever — but what about delivering value to consumers?

Netflix went through a lot to get to this point, but it seems that it will be smooth sailing from here on out as it posts healthy numbers in terms of new subscribers and revenue. Were the latest price hikes for all subscription tiers necessary, then? (Image: Matoo Studio, Unsplash)

Gone are the days when people would question the viability of Netflix’s initial business plan: that of burning through dozens of billions of dollars in loans every year in the hopes of building a large enough customer base before going bankrupt. After pulling off the greatest “bait and switch” scheme in entertainment history in 2023 — allowing or even encouraging people to share accounts for free for a decade, then cracking down on the very same practice once the service hit 200 million subscribers — Netflix is now seemingly on a roll. Not only is the company adding millions of new subscribers every quarter, but it’s posting impressive numbers despite facing more intense competition than ever.

This is the picture painted by Netflix’s latest earnings report (PDF), where the company confirms it has added 19 million subscribers during the previous quarter thus surpassing 300 million subscribers worldwide. It’s worth noting that this may be the last time Netflix reveals precisely how many subscribers it added during any given quarter: its management means to “only announce major subscriber milestones as they are crossed” from now on. The streaming service is also bringing in more money than ever: revenue in 2024 reached $39 billion (up from $33.7 billion in 2023) and net income rose to $8.71 billion (compared to $5.4 billion in 2023).

After pulling off the greatest “bait and switch” scheme in entertainment history, Netflix is now doing well in terms of both new subscribers and revenue.

Netflix’s 2025 revenue forecast equates to 12%-14% year-over-year growth, which may not sound like much but is actually pretty impressive given the service’s penetration in all major markets. The company believes that Netflix’s customer base has plenty of room for expansion despite the service’s already significant reach — it claims at least two viewers per subscription — per the company’s letter to investors:

With over 300M paid memberships (which excludes Extra Member accounts) and multiple…