Apple is putting up significant price increases starting today for its Apple TV+ streaming service along with Apple Music and an Apple One bundle, citing higher licensing and content costs.
The monthly price for Apple TV+ will go to $6.99 from $4.99, while the annual plan will go up to $69.99 from $49.99. Both are up 40%, although this is the first time the streaming service has gone up since its launch in November 2019.
Apple Music raises $1 for individuals, to $10.99 a month, with the family plan jumping $2 to $16.99 a month. Apple One, which combines video and music streaming with cloud services, video games, and other options, will go for $16.95 per month from $14.95 for individuals. Families will pay an additional $3, at $22.95 a month.
“The change in Apple Music is due to increased licensing costs, so artists and songwriters will earn more for streaming their music,” an Apple representative explained in a statement to Deadline. “We also continue to add innovative features that make Apple Music the best listening experience in the world.”
As for Apple TV+, the statement said, it launched “at a very low price because we started with just a few shows and movies. Three years later, Apple TV+ is home to a wide range of award-winning and widely acclaimed series, feature films, and blockbusters.” documentaries, and entertain children and family from the world’s most creative storytellers.”
The economics of video streaming run differently in tech giants like Apple than in entertainment companies like Disney, NBCUniversal, Warner Bros. Discovery, or even a pure gaming group like Netflix. Since Apple is primarily interested in continuing to pay for its hardware as well as its end-to-end services, its ROI in expensive film and TV projects is less focused than in other companies.
Even after the 40% jump, Apple TV+ will still be toward the lower end of the subscription streaming range, though Peacock’s premium tier and the ad-supported version of Paramount+ will now be cheaper. The soon-to-be-launched Netflix subscription plan will match ads with Apple TV+ at $6.99 per month.
Since Apple TV+ is one of several subsets of the overall services division, the company has emphasized the performance of the whole and has never disclosed subscriber numbers or viewing metrics for streaming video. While Apple has reached an agreement that Nielsen will measure its audience in the United States, contracting Emmy-winning comedy… Ted Lasso A place in the weekly rankings, similar notable events like winning an Oscar for CODA were not accompanied by any revelations about viewing.
Tony Sakunagi, an analyst at Bernstein Research, estimates there are between 20 million and 40 million Apple TV+ subscribers, generating between $1 billion and $2 billion in revenue. Other analysts pointed to the company’s massive global installed base of nearly a billion iPhones and said that even if a small portion of those users choose to subscribe to Apple TV+ (which comes free for the first year with the purchase of a device), the service can easily attract them. Tens of millions of paying customers in its early years.
Unlike any other top-tier player, Apple has so far resisted adding an ad category for Apple TV+, even though it has shown an increased appetite for live sports, signing rights deals with Major League Baseball and Major League Soccer and pursuing the NFL’s Sunday Ticket package. Sports, as Prime Video, ESPN+, Peacock, and others have shown, is a strong attraction for advertisers in the subscription flow.
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