October 26, 2023
In a move that has caught the attention of tech enthusiasts and consumers alike, Apple Inc. has announced price hikes for several of its subscription services in the United States and other markets. The adjustments, which impact Apple TV+, Apple Arcade, and Apple News+, have already taken effect for new subscribers, while existing users will experience the changes upon their next renewal, with a 30-day grace period.
Apple justified the increase by stating their commitment to providing top-notch experiences to their customers. “We are focused on delivering the best experiences possible for our customers by consistently adding high-quality entertainment, content, and innovative features to our services,” said an Apple spokesperson in a statement to Engadget.
In specific terms, the monthly subscription fee for Apple TV+ has surged from $7 to $10 in the US, marking a $3 increase. Additionally, the annual TV+ plan, which was previously priced at $69, now stands at $99. Apple Arcade subscribers are now required to pay $7 per month, up from the original $5. As for Apple News+, the standalone subscription fee has been upped from $10 to $13 per month. It’s worth noting that both Apple Arcade and Apple News+ have maintained their initial pricing since their launch four years ago, making these adjustments the first of their kind for these services.
Notably, the last change in Apple TV+ pricing occurred in October 2022, when it was increased from $5 to $7 per month. This recent adjustment means that the service’s price has doubled in just over a year, reflecting Apple’s strategic approach to its subscription model.
In conjunction with these individual service price updates, Apple has also revised the pricing structure for its Apple One plans. The individual subscription, now priced at $19.95 per month, includes Apple Arcade, Apple Music, Apple TV+, and 50GB of iCloud storage—a $3 increase. Meanwhile, the family plan, accommodating up to six users and offering 200GB of total iCloud storage, now costs $25.95 per month, reflecting the same $3 increment.
At the Premier level, which encompasses Apple Fitness+ and Apple News+ access and offers 2TB of iCloud storage for up to six users, the monthly cost has been adjusted to $37.95, up by $5 from the previous pricing.
These services have become integral to Apple’s revenue streams, with the company’s Services division—encompassing offerings like AppleCare and the App Store—reaching an unprecedented high of $21.2 billion in the second quarter of 2023. Services have become Apple’s second-largest revenue generator, trailing only behind the iconic iPhone.
Apple’s decision to announce these price changes precedes its upcoming earnings report scheduled for November 2. Additionally, the tech giant has slated a product event for October 30, where consumers can anticipate the unveiling of new MacBook Pro and iMac models, further enriching Apple’s product ecosystem.