The recent significant price increase for Apple TV+ raises questions about the future of ad-supported streaming options and the potential for advertising to become a compelling opportunity for Apple.
In a move that has surprised many subscribers, Apple has announced a significant price increase for its streaming service, Apple TV+. The monthly subscription fee will be raised from $6.99 to $9.99, and the cost of an annual plan will increase from $69 to $99. This comes just a year after Apple last raised prices for the service, from its launch price of $4.99 to $6.99.
Apple justified the price hike by stating its commitment to delivering the best experiences possible for its customers, citing the extensive selection of award-winning and acclaimed series, films, documentaries, and family entertainment available on Apple TV+. However, Apple is not alone in raising prices, as other streaming services like Netflix, Peacock, Disney+, Hulu, Paramount+, Discovery+, and Max have also adjusted their prices this year.
While most of these services have kept the price of their ad-supported tiers the same, Apple TV+ does not currently offer an ad-supported option. This raises questions about whether the significant price increase will ultimately lead to the introduction of an ad-supported tier for Apple TV+. As Apple seeks to grow its services business, advertising could become a compelling opportunity. Amazon, for example, has made advertising a strategic priority for its video business and plans to switch all Prime Video users to an advertising tier early next year.
The absence of an advertising option for Apple TV+ sets it apart from its competitors. With shows like “Ted Lasso” gaining popularity, it is unclear how the price increase will impact subscriber numbers and whether Apple will consider introducing an ad-supported tier in the future.
In addition to the price increase for Apple TV+, Apple is also raising the prices of its Apple One bundle, which includes Apple TV+, Apple Music, Apple Arcade, and cloud storage. Apple News and Apple Arcade will see price increases to $12.99 and $6.99, respectively.
Apple’s statement highlights the growth and improvements it has made to its services, such as tripling the number of titles available for Apple Arcade and adding more than 100 new publishers to Apple News. These additions, along with features like puzzles, aim to enhance the overall user experience.
As Apple continues to evolve its services business, it remains to be seen how the price increase will impact subscriber satisfaction and whether Apple will explore advertising as a way to further grow its streaming service. With its competitors already offering ad-supported options, Apple may need to consider this option to remain competitive in the streaming market.