Apple TV+ Price Increase Introduces Ad-Supported Tier: Key Information

Apple TV+ recently announced a 30% increase in its monthly subscription price, bumping it up to $12.99. This change comes after the service initially launched at $4.99 per month with a free trial option. Rumors suggest that Apple TV+ may introduce an ad-supported tier at $6.99 per month, similar to Disney+.

Apple’s decision to raise prices aligns with its efforts to compete with streaming giants like Netflix and Disney+. Despite offering top-notch original content like ‘Severance’, which received 27 Emmy Award nominations this year, Apple TV+ has struggled to build a sizable subscriber base. Reports indicate that by the end of 2024, the service only had around 40.4 million subscribers, significantly fewer than Netflix’s 300 million paid memberships.

The price increase may pave the way for an ad-supported tier, making the service more accessible to a wider audience. Apple is known for its strategic moves to expand its reach, like launching the TV+ app on Android devices earlier this year. By broadening its scope beyond iOS users, Apple hopes to increase brand visibility and revenue.

This latest price hike marks the third increase in as many years, with previous adjustments in 2023 and 2022. Despite the challenges in gaining subscribers, Apple remains committed to its content investments and upcoming premieres, such as Season 4 of ‘The Morning Show’ and the original film ‘Highest 2 Lowest’.

Overall, Apple’s price adjustment for Apple TV+ exemplifies its ongoing balancing act between content spending and revenue generation. This move not only aims to offset the reported $1 billion annual losses on the streaming service but also sets the stage for potential future developments, like an ad-supported subscription tier.