Apple TV+ has announced a significant price hike for its subscription service, raising the monthly cost by 30% from $9.99 to $12.99. This marks the latest in a series of price increases since the service launched in 2019 at $4.99 per month. Despite producing critically acclaimed shows like “Severance,” “Ted Lasso,” and “The Morning Show,” Apple TV+ remains a relatively small player in the streaming market.
The service is part of Apple’s broader strategy to generate revenue through services alongside its hardware offerings. While the monthly subscription price is increasing, Apple is not raising the $99.99 annual subscription fee or the cost of bundling Apple TV+ with other services through Apple One. The company declined to disclose subscriber numbers or specific reasons for the price increase.
The price hike has sparked speculation about the potential introduction of an ad-supported tier for Apple TV+.
Apple TV+ price hike explained
Recent reports and the hiring of executives from other companies have fueled rumors that an ad-supported option may be on the horizon.
With the new monthly subscription price set at $12.99, an ad-supported plan priced around $6.99 could be an attractive option for consumers. This pricing structure would be similar to that of Disney+, which offers a standalone ad-free plan at $15.99 per month and an ad-supported plan at $9.99 per month. The price increase is not limited to the United States, as Apple TV+ has raised subscription prices worldwide, including in the UK.
The monthly cost in the UK has risen by £1 to £9.99, while annual prices remain unchanged at £89 per year. Technology analyst Paolo Pescatore commented on the trend of price increases in the streaming industry, stating, “The streaming business is following the traditional pay TV world with annual price rises. We should get accustomed to these price rises, as streamers seek to broaden their diversified programming portfolio.”
Despite the challenges faced by Apple TV+, including reported annual losses of over $1 billion, the service has gained recognition for its original content.
As the streaming landscape continues to evolve, it remains to be seen how Apple will position its service and whether an ad-supported tier will be introduced to attract a broader audience.