• by Karlene Lukovitz  @KLmarketdaily, October 26, 2023

Apple has upped the monthly subscription price for Apple TV+ by $3, to $9.99, as well as increasing the prices of several other subscription prices. 

The increase — the second for Apple TV+ since October 2022 — follows recent price hikes on the ad-free tiers of rival streamers Netflix, Max, Discovery+, Disney+ and Hulu, as entertainment companies seek to improve their bottom lines with advertising supported by growing ad-supported subscriptions.    

Apple TV+ is part of a distinctly different business model driven by Apple’s core device business. Apple markets TV+ and multiple other subscription products, payment services and warranties under its lucrative Services unit as one key means of monetizing the 2 billion users of its iPhones and other devices. 

So far, Apple — which does not reveal the number of TV+ subscribers — has limited advertising around TV+ to mostly self-promotional ads run before programming, although it does run advertising during its Major League Baseball coverage. But the company’s recent hire of advertising executive Lauren Fry is widely assumed to signal that it’s planning to launch a with-ads tier. 

The Services business generated $21.21 billion in revenue in Apple’s fiscal third quarter — up 8% year-over-year and second only to the iPhone’s $39.67 billion contribution.

The company is also raising the prices of its Arcade and News+ subscriptions, by $2 and $3, respectively, to $6.99 and $12.99 per month. 

In addition, prices for the Apple One subscription bundling service have been raised to $19.95 (from $16.99) for the individual plan, $25.95 (from $22.95) for the family plan, and $37.95 (from $32.95) for the premier plan. 

The price hikes apply in the U.S. and “select” international markets. They are effective immediately for new subscribers, and in the next renewal cycle for existing subscribers. 

In a statement, Apple said the price increases are necessary to support continued expansion of quality content on the subscription services.