Apple Inc. (NASDAQ:AAPL) raised Apple TV+ monthly subscription prices 30% to $12.99, effective Thursday for new customers and within 30 days for existing subscribers after their next renewal date.
Losses Mount Despite Emmy Success
The price adjustment comes as The Information reported Apple TV+ loses over $1 billion annually, making it the only unprofitable segment in Apple’s services portfolio.
The platform trails Netflix Inc. (NASDAQ:NFLX), Walt Disney Co.‘s (NYSE:DIS) Disney+ and Amazon.com Inc.‘s (NASDAQ:AMZN) Amazon Prime Video in subscriber count.
Apple has allocated over $5 billion annually to content since 2019, though this budget was reduced by approximately $500 million last year. Analysts estimate Apple TV+ reached 40.4 million subscribers by end-2024, significantly behind Netflix’s 301.63 million and Disney’s 124.6 million subscribers.
Strategic Expansion Efforts Continue
The company maintains its expansion strategy despite losses. In February, Apple launched the TV+ app on Android devices, with Bank of America Securities analyst Wamsi Mohan estimating a potential $2 billion revenue impact from penetrating 1.5% of Android’s installed base. The move aims to increase brand awareness beyond the iOS ecosystem.
Yearly Rate Unchanged, Bundle Pricing Stable
Apple preserved its $99.99 annual subscription rate and maintained Apple One bundle pricing at $19.95 monthly. The streaming service previously increased from $6.99 to $9.99 in 2023, following its initial $4.99 launch price.
Industry data shows consumers spend an average $52.97 monthly on streaming services, with Apple TV+ ranking highest in content quality despite having the smallest library among major platforms, according to Self Financial study using IMDb ratings.
Read Next:
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo courtesy: jamesteohart / Shutterstock.com
