Apple is raising the monthly price of its Apple TV+ streaming service to $12.99, marking a 30% increase from the previous $9.99 subscription price.
Why it matters: The price hike comes as Apple TV+ reportedly loses money, making it the only service in Apple’s portfolio that isn’t profitable, despite its productions earning numerous awards and nominations.
The details:
- The updated price takes effect for new customers starting Thursday and will impact current subscribers 30 days after their next renewal date.
- The yearly subscription rate remains unchanged at $99.99, and the price for the Apple One bundle of services, starting at $19.95 per month, also remains the same.
- This marks the third time Apple has raised the subscription price for its streaming service since its launch in 2019 at $4.99 per month.
- In 2023, the monthly subscription increased from $6.99 to $9.99.
Apple TV+ has lagged behind Netflix, Disney+, and Amazon Prime Video in subscriber count, despite its productions earning thousands of nominations and wins.
What they’re saying:
- “Since its launch, Apple TV+ has expanded its library to include hundreds of exclusive Apple Originals with thousands of hours of premium programming across genres and new releases weekly – all ad-free,” Apple said.
- Apple TV+ is estimated to have reached around 40 million subscribers by the end of 2024, according to a Visible Alpha poll of five analysts. Meanwhile, Netflix had more than 300 million subscribers in the same period.
The iPhone maker is reportedly losing over $1 billion annually on Apple TV+, according to The Information.
What’s next: Apple recently introduced its service to new international markets, potentially expanding its global reach. The move to increase subscription fees is seen as a strategy to balance the service’s growing content investment and operational costs.
