In a strategic move to boost its revenues, Apple has increased the prices of its TV+, Arcade Gaming, and News+ subscriptions. The tech giant announced this on Wednesday. With the new development, Apple is following in the footsteps of other content providers that have recently implemented price hikes. However, users need not worry, as the price increase has only been implemented in the US.
Starting with the TV+ streaming service, Apple has increased its monthly subscription cost from $6.99 to $9.99, only the second price increase in the service’s four-year history. Originally launched in 2019 for $4.99, this adjustment raises the annual price of TV+ from $69 to $99. It’s worth noting that some customers continue to enjoy free access to TV+ through partnerships with mobile phone carriers like T-Mobile USA Inc.
Apple has confirmed to India Today Tech that there will be no adjustments to the subscription prices of Apple TV+, News+, and other services in India.
Apple justified this price increase by highlighting the success of its TV+ service over the past four years. In a statement, the company said Apple TV+ has made significant achievements in the streaming industry thanks to its rich selection of award-winning series, feature films, documentaries and family entertainment.
In addition to TV+, Apple has also raised the monthly subscription price of its Arcade gaming service from $4.99 to $6.99. Additionally, the News+ service now costs $12.99 per month, up from the previous price of $9.99. These price changes apply to both the United States and select international markets.
Apple’s ambitions to grow its services division, which currently contributes about 20% of its revenue, are evident in these price adjustments. The company is attempting to establish itself as a central hub for streaming content and is planning to revamp its TV app later this year to strengthen its broader video offerings, Bloomberg reports.
Apple’s TV app is designed to aggregate content from a variety of sources, including iTunes, the TV+ service, live sports networks, and third-party providers like Amazon Prime. By enhancing the TV app, Apple aims to guide more customers toward its expanded video strategy, thereby strengthening its presence in the streaming landscape.
These prices are in line with the recent trend of subscription service providers including Netflix Inc. raising their prices. Notably, some platforms such as Netflix, Amazon.com Inc. and Disney have introduced tiered ad-supported subscription models, while Apple is unique for its ad-free experience and one of the more budget-friendly options among the major providers.
In recent months, Apple TV+ has expanded its content library to include high-budget films like Martin Scorsese’s “Killers of the Flower Moon.” Apple Arcade gives customers access to over 200 games that can be played on Apple devices, including iPhone, iPad, Mac computers, and Apple TV. News+ is a collection of more than 450 publications and narrated audio articles, further strengthening Apple’s position in the world of digital services.