Apple just raised its monthly Apple TV+ fee from $9.99 to $12.99, marking a third price increase since its 2019 launch, with the change effective immediately for new subscribers and rolling out to current users 30 days after their billing cycle; the annual $99 rate and Apple One bundle pricing remain unchanged, and Apple attributes the increase to its expanding, ad-free library of original content—though the service still reportedly loses over $1 billion annually and continues to trail streaming giants in subscriber numbers.
Sources: Decider, Reuters, The Verge
Key Takeaways
– It’s the third price hike for Apple TV+ since launch (from $4.99 to $6.99 to $9.99, now $12.99).
– Annual and bundle deals (Apple One, $99/year) remain unchanged, offering value alternatives.
– Despite investment in original programming, Apple TV+ still runs at a $1 billion annual loss and maintains a smaller subscriber base compared to rivals.
In-Depth
Apple’s decision to increase the Apple TV+ monthly subscription price to $12.99 represents a strategic pivot in how the company tries to balance its content ambitions with financial realities. Since its 2019 debut at just $4.99, Apple TV+ has seen two major price bumps—to $6.99 in 2022 and then $9.99 in 2023—so today’s 30% increase continues a careful progression upward. The change kicks in immediately for new subscribers, while existing customers will see the updated rate 30 days after their next billing cycle, and fortunately, the annual rate and Apple One bundles are untouched—a nod to rewarding users who commit longer term.
That move matters: a $99 annual plan or Apple One package can slash the effective monthly cost to as little as $8.25, giving cost-conscious users a more appealing option in a landscape dominated by rising streaming prices. Apple’s spokesperson emphasizes that the increase reflects the platform’s ever-expanding library of original, ad-free content released weekly across genres—underscoring their belief that quality warrants premium pricing.
On the flip side, Apple TV+ continues to operate at a reported $1 billion loss each year, and despite growing its subscriber base to the mid-tens of millions, it still lags well behind Netflix, Disney+, and Amazon Prime Video. The hike is in line with competitors like Peacock, which recently raised prices as well; the broader industry trend signals consumers are being nudged toward paying more for streaming, but bundled and multigenerational deals are where the smart savings lie. For now, Apple is betting that customers, especially devoted Apple ecosystem users, will stick around for the premium, ad-free originals.