Apple TV+ has announced a price increase for its monthly subscribers in the UK and around the globe, reflecting the ongoing rise in the cost of streaming services. Starting immediately, the monthly subscription fee will increase by £1, bringing the new total to £9.99 per month. However, the annual subscription rate remains unchanged at £89 per year. This adjustment means that the cost of an Apple TV+ subscription has effectively doubled since its launch in the UK back in November 2019.
According to a statement given to the BBC, new subscribers will see the updated pricing take effect right away, while current subscribers will have a grace period of 30 days following their next renewal before they are required to pay the higher rate.
Since its inception, Apple TV+ has significantly expanded its library, now boasting hundreds of Apple Originals and thousands of hours of premium programming. The platform releases new content weekly, all without advertisements, which a company spokesperson highlighted as a key selling point.
In the United States, users of Apple TV+ will face a more substantial increase in their subscription cost, rising from $9.99 to $12.99 per month. Although Apple does not publicly disclose subscription figures, Statista estimated that there were approximately 25 million paid subscribers in 2022, alongside an additional 50 million users accessing the service through various promotions.
Further analysis by tech blog The Information suggested that the subscriber count could be as high as 45 million as of March, though it also reported that Apple TV+ was incurring losses exceeding $1 billion (£750 million) annually.
The streaming service has gained significant traction following the release of major shows like the acclaimed sci-fi series Severance and the Seth Rogen-led program The Studio. Paolo Pescatore, a technology analyst at PP Foresight, commented on the situation, stating that the streaming industry is beginning to mirror the traditional pay-TV sector with regular annual price hikes. He noted, "We should get accustomed to these price rises, as streamers seek to broaden their diversified programming portfolio."
This marks the first price increase for Apple TV+ in nearly two years. In comparison, Netflix has implemented annual price increases, with subscription costs ranging from £5.99 to £18.99 per month. Other streaming services have also raised their prices recently; for example, Disney+ now charges between £8.99 and £12.99, while Paramount+ has increased its prices to between £4.99 and £10.99.
While many other streaming services have shifted to ad-supported lower-tier offerings, Apple TV+ continues to focus on an ad-free experience. Mr. Pescatore remarked, "We are in a golden era of storytelling, and users still want to immerse themselves in unique content." He emphasized that there are abundant opportunities to attract new audiences, whether through large-scale theatrical releases or strategic moves into live sports acquisition.
As the landscape of streaming continues to evolve, Apple appears well-positioned due to its extensive user base. Nevertheless, the company must improve its communication regarding its unique advantages over competitors in order to retain and grow its subscriber base.
