Apple Inc. (AAPL) has announced an increase in the subscription price of its Apple TV+ streaming service, a move mirroring broader industry trends aimed at balancing content investment with profitability. The market's initial response appears muted, suggesting investors view the decision as a pragmatic approach to sustaining the growth of Apple's Services segment.
Effective today, new Apple TV+ subscribers in the U.S. and select international markets will face a price increase, with the monthly fee rising from $9.99 to $12.99. Existing subscribers will see the adjustment reflected within 30 days of their next renewal date. The company attributes the price hike to the substantial expansion of its content library, which now boasts hundreds of ad-free Apple Originals across various genres.
Apple's Services segment, a key driver of overall financial performance, reported revenue of $27.3 billion in the fiscal third quarter of 2025, a 12.9% year-over-year increase. The price adjustment is projected to further strengthen this segment, contributing positively to Apple's financial health as the company seeks to offset increasing production costs.
Streaming Price Landscape
The streaming landscape has seen a wave of price increases among major players. Netflix (NFLX) raised its premium plan to $22.99 per month in October 2023, while Disney+ (DIS) increased its ad-free plan to $13.99 per month in the same period. Hulu also increased their ad-free plan to $17.99. Even Peacock (CMCSA) raised its premium plan to $5.99 per month in August 2023. These adjustments reflect an industry-wide response to the escalating costs of content creation and the need to maintain profitability in a fiercely competitive market.
The long-term success of Apple TV+ hinges on Apple's ability to continue investing in compelling content and carefully managing subscriber retention in an increasingly competitive streaming market. Today's muted stock reaction shows the markets considering the impact of the Apple TV+ price increase as a calculated move to sustain profitability within the streaming sector.
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