After nearly three years, Apple Inc. has said it was raising prices — for its Apple TV+ subscription TV service, that is. It would be the first increase in almost two years. Effective immediately, subscribers in the United States will have their monthly rates increase from $9.99 to $12.99. This change is part of a larger trend within the streaming world, with several other platforms raising their own prices in recent months.
In early 2022, Apple TV+ was touting about 25 million paid subscribers. Moreover, nearly 50 million more people experienced the service through promotional free and discounted rides. This modest price adjustment will bring Apple TV+ closer in line with its competitors. Netflix isn’t the only one; other streaming behemoths have moved to increase their base rates in the last year. And sure enough, in October Disney+ increased its subscription costs to between £8.99 and £12.99. Then, in November, Paramount+ did the same, raising its prices to £4.99-£10.99.
Internationally, though, Apple TV+ has made even deeper cuts to its pricing. In the United Kingdom the low price monthly has gone up £1 to £9.99/month. The catch is that the annual subscription hasn’t increased commensurately — it’s still £89 per year.
AT s , scholars of the fast–moving housing sector point out that this price increase reflects overall patterns across the industry . Paolo Pescatore is a independent technology analyst at PP Foresight. More than their individual merit, he emphasized their significance within the rapidly changing environment of the streaming business .
“The streaming business is following the traditional pay TV world with annual price rises,” – Paolo Pescatore
Pescatore too echoed the message that consumers should get ready for these regular price increases. First, streaming services are all clamoring to increase the quality of their content. He told storytellers that consumers want new delivery methods for stories and added that, “we are in a golden era of storytelling.”
Over the last couple years, Apple TV+ has made tremendous strides. This success is primarily thanks to its original slate of critically acclaimed programming, including the sci-fi thriller “Severance” and the upcoming Seth Rogen-led “The Studio.” In response, an Apple spokesperson pointed to the platform’s focus on original, high-quality content.
“Since its launch, Apple TV+ has expanded its deep library of hundreds of Apple Originals, with thousands of hours of premium programming across genres and brand-new releases weekly – all ad-free,” – Apple spokesperson
Even as costs have continued to increase, Apple is in a strong competitive place with its hundreds of millions of users. As competition increases within the streaming service space, Pescatore strongly encourages that Apple needs to define its unique value proposition compared to competitor streaming services.
“All that is changing is the distribution and Apple is well-positioned with its vast user base – however, it needs to do a better job of articulating its merits over rivals,” – Paolo Pescatore
As Apple TV+ navigates this new pricing structure, it aims to continue delivering high-quality content while adapting to evolving consumer expectations in a competitive landscape.