Brace yourself, streaming fans -- Apple TV+ just dropped a financial bombshell. The popular service has hiked its monthly subscription price for new U.S. subscribers by a staggering 33%, jumping from $9.99 to $12.99 as of today, as the Daily Mail reports.
Apple TV+ is raising prices for the first time since October 2023, a move that impacts its 45 million subscribers amid an industry-wide push for profitability after years of heavy content investments.
Let’s rewind to the start. Since launching in November 2019 at a modest $4.99 per month, Apple TV+ has now ballooned by 160% in cost. That’s a steep climb for a service many signed up for as a budget-friendly option.
New subscribers in the U.S. and select international markets -- though specifics on those countries remain undisclosed -- face the $12.99 rate immediately. Existing subscribers aren’t off the hook; they’ll see the increase within 30 days of their next renewal.
Apple hasn’t clarified if this change will ripple into Apple One, its bundled subscription service. For now, the focus is on the standalone streaming price jump.
This isn’t just a minor adjustment -- it’s a bold move. Apple TV+ has been bleeding cash, reportedly losing over $1 billion annually as content spending outpaces revenue, according to a March report from The Information.
Apple isn’t apologizing for the hike. The company points to its ad-free model and hit shows like Severance and Slow Horses as reasons for the higher cost. They argue subscribers get value with a vast library of Apple Originals and live sports.
“Since its launch, Apple TV+ has expanded its deep library of hundreds of Apple Originals, with thousands of hours of premium programming across genres and brand-new releases weekly -- all ad-free,” an Apple statement declared.
“Subscribers can explore a rich offering of thrilling dramas, epic sci-fi, feel-good comedies, and live sports,” the statement continued. That’s the pitch, but not everyone is buying it.
Subscriber frustration is boiling over. Alex Palmer, 33, from Los Angeles, vented to the Daily Mail, saying, “I am cancelling.” He’s not alone in feeling burned after signing up at $4.99 and watching costs creep up.
Apple’s upcoming slate might not soothe the sting. Premieres like The Morning Show season four on Sept. 17 and Slow Horses season five on Sept. 24, are highlights, alongside films like The Lost Bus on Oct. 3. But will they justify the price for angry users?
The industry isn’t standing still either. Competitors like Netflix, which bumped its ad-tier to $7.99 in January, and Peacock, with a 40% hike in July, are also squeezing subscribers. Paramount Plus, Max, Hulu, and Disney+ have all raised rates recently, with entry-level plans now at $9.99 for several.
This isn’t just Apple’s game -- it’s a sector-wide shift. Over the past 18 months, every major streaming platform has upped prices, chasing profitability after pouring billions into premium content. Experts warn Disney, HBO Max, and Paramount+ might follow Apple’s lead with even more increases.
For wealth-minded readers, this trend raises a question: are streaming services still a frugal entertainment choice? With costs creeping toward cable-era levels -- Prime Video at $8.99, Apple at $12.99 -- it might be time to reassess subscriptions. Consider trimming to one or two platforms and rotating based on must-see releases.
Apple’s gamble hinges on content loyalty, but in a free-market environment, consumers hold the power. If enough follow Palmer’s lead and cancel, companies may rethink these hikes. Stay sharp, track your spending, and don’t let subscription creep erode your wealth-building goals.