Breaking: Apple TV+ to Increase Subscription Price by 43%; Cost Doubles in Just Over One Year
Since its launch in November 2019, Apple TV+ has been one of the — is not the — best value in streaming. However, almost exactly one year after a $2 price increase, the platform is raising costs again, this time going from $6.99 to $9.99 for a monthly subscription and $69 to $99 per year; this represents a 43% increase in price. Before October 2022, the Apple TV+ rate had been just $4.99 monthly and $49.99 annually, therefore, the new price more than doubles what the cost had been just over one year ago.
- Apple TV+ is raising its rate by 43% to put it more in line with other premium streaming services.
- The streaming service has long produced high-quality originals, but its library was far smaller than most of its competitors.
- The tech giant is also increasing the cost of Apple Arcade, News+, and the Apple One bundle.
Why Is Apple TV+ Increasing Its Prices?
Like nearly every other streaming service, Apple is increasing its prices in an attempt to make streaming profitable, which only Netflix and Warner Bros. Discovery — to a far lesser extent — has been able to do thus far. One way that many entertainment companies have tried to make their streaming offerings pay off is by introducing ad-supported subscription options, something that Apple has yet to do. However, for well over a year, there have been reports that the tech giant has been hiring ad-focused TV execs in an effort gearing up to incorporate this dual-pronged approach to its streaming offerings.
The mantra at Apple TV+ has long been “quality over quantity,” but even when you are producing fewer shows than your biggest-budget competitors, working exclusively with A-list artists can be costly. In the coming weeks, the streaming platform will become the exclusive home of Martin Scorsese’s “Killers of the Flower Moon,” and next year, Tom Hanks and Steven Spielberg will bring their third World War II-set series “Masters of the Air” to the streamer, not to mention many other projects in the works. So even though Apple is estimated to be the biggest company in the world by some metrics, it is still looking for ways to increase its revenue in hopes of paying off the investment it has made in content thus far.
In recent months, the streaming world has seen price hikes from Netflix — which confirmed increases to multiple plans last week — all components of the Disney Bundle raised their individual and collective prices earlier in October, Peacock — which raised its rates for the first time in its history — Paramount+, Max, discovery+, and others.
Is Apple TV+ Worth It Following New Price Hike?
When it comes to the rate of high-quality content, very few platforms have the track record of Apple TV+. From Emmy-winners “Ted Lasso” and “The Morning Show” to science-fiction hits “Silo” and “Foundation” to feel-good comedies “Shrinking” and “Platonic” to musical comedy “Schmigadoon!” and best-seller adaptation “The Last Thing He Told Me” to dramas “For All Mankind” and “Severance” to hits like “Dickinson,” “Mythic Quest,” “Slow Horses,” “Physical,” and more, the service knows how to turn out entertaining and engaging programming.
However, unlike most other streaming services, Apple TV+ relies solely on originals for its scripted library. While its collection of titles grows with the release of every new series, season, and film, it does not have the archival history nor any licensed shows to keep customers engaged when they have finished their favorite new show. While new, buzz-worthy titles tend to be what gets consumers to a platform, the familiar, repeatably bingeable series are often what keep them subscribed. So, without that, Apple has to look for other ways to keep customers engaged.
One of those methods is live sports. With MLS Season Pass and its Friday night MLB package, Apple TV has been investing in sports rights for nearly two years. But with the NBA reportedly looking to ink a streaming-only package, the expanded College Football Playoff needing a home, and global Formula One racing rights up for grabs, it appears that Apple wants to bring more sports to its platform.
Apple also announced this week that it is redesigning its Apple TV app and consolidating a number of its other video apps to provide users a one-stop shop for all things TV streaming.
Apple TV+
Apple TV+ is a subscription video streaming service for $9.99 a month that includes high-quality original shows and movies including Best Picture winner “CODA,” popular sitcom “Ted Lasso,” and dramas like “The Morning Show” and “Severance.” Apple TV+ is also home to MLB baseball games on Friday nights and MLS Season Pass.