Apple has increased the monthly price of its streaming service TV+ from $9.99 to $12.99. The move marks a steady increase in the streaming service’s price over the years. Having initially launched at $4.99 (USD) per month, with the user base and original content growing, the price is now more than double. The company’s services division now commands a major portion of the revenue.
The 30% jump in the subscription cost reflects the growing content investments, particularly in original series, movies and sports rights. The blockbuster F1 The Movie is an Apple production, if you did not know, hence it is only-fair to charge a premium for the service. However, it is important to note that the F1 movie is currently available on Apple TV app as a rental or purchase option. In the future, Apple may add the movie as a streaming title, along with the Apple TV+ subscription.
Apple One bundle turns cost-effective
The Apple One subscription price remains unchanged which also acts as a catalyst for people to buy-into Apple’s ecosystem further. It is a known human behaviour to opt for a cheaper bundle instead of paying higher for individual services. However, it might still be the better option to opt for the singular Apple TV+ service, for those who do not use any other Apple services.
The individual Apple TV+ service subscribers may feel the pinch. Analysts suggest that the newer pricing puts Apple TV+ in head-to-head competition with Netflix, Disney+, and Prime Video in terms of pricing tier. However, the iPhone maker risks losing market share given Apple TV+’s smaller library compared to all the market leaders in the content streaming industry.
The move highlights Apple’s strategy to push bundled services while testing subscriber loyalty in a competitive streaming market where exclusive content is often the deciding factor for user retention.
