Apple is raising the prices of several of its subscription services – including Apple TV Plus – joining other tech giants that have also implemented price hikes lately.
Subscription prices for Apple TV Plus, Apple Arcade, Apple News Plus are all increasing by at least $2 a month. Apple One subscription bundles are now also pricier for all new subscribers, and the current ones will see the price increases in 30 days on their next renewal date.
It’s the second hike in a year. In October 2022, Apple TV Plus went from $5 to $7 a month. From now on, watching films and TV shows on the streaming platform will cost $10 a month.
“We are focused on delivering the best experiences possible for our customers by consistently adding high-quality entertainment, content, and innovative features to our services,” Apple said.
Apple joins several other streaming services that have raised their prices this year, including Netflix, Hulu, Disney Plus, Paramount Plus, Discovery Plus, and Max. Most plans but especially tiers that do not include advertisements are now more expensive.
For example, Netflix, the most popular streaming service in the world, has recently raised the price for its lowest-prices ad-free plan from $10 to $12 – even though it is the only major platform not bleeding money.
Ad-free Disney+ now costs $14 a month, around 27% more than previously, and Hulu’s ad-free price rose by 20% to $18.
In the industry, the hikes are explained by pressure from investors to bring in more money, following an initial period of trying to attract as many new customers as possible with low prices in a competitive market.
Subscription services are a key and extremely profitable part of Apple’s business. The segment generated more than $21 billion in revenue during the company’s fiscal third quarter (PDF) – only the iPhone generated more ($39.6 billion) during the same time period.
Consumers are definitely feeling the bite, though. For two straight quarters in 2022 and 2023, cancellations have outpaced new subscriptions for digital memberships, food-of-the-month clubs, and a host of other purchases, personal finance app Rocket Money told the Wall Street Journal in April.
Streaming services have been particularly impacted. Cancellations for Netflix, Hulu, HBO Max, and others were up 49% in 2022 from the previous year.
When there are so many platforms around, all these price hikes quickly add up. Today, paying for the various streaming services of your choice is no different than paying for cable so, unsurprisingly, online piracy is getting back on its feet, Cybernews reported recently.
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