Apple Inc. has delivered a sour bite to its customers.
On Wednesday, the tech giant announced price hikes across several of its premium subscription services, including Apple TV+, Apple Arcade, and News+. The move, while upsetting some of its customers, could boost revenue for Apple's increasingly critical services division, already registering a whopping $21.21 billion in its last fiscal quarter.
Apple TV+ is set to cost $9.99 monthly, up from the previous $6.99. The yearly subscription fee will also leap from $69 to $99. Alongside, the Apple Arcade gaming service and News+ are inching upwards to $6.99 and $12.99, respectively.
These hikes don't just affect individual service users. Apple One's bundled services, a popular family choice, are also getting pricier. The basic plan, which includes Apple Music, TV+, Arcade, and 50GB of iCloud storage, will now set you back $19.95, a jump from its previous $16.95. The Premier plan, integrating News+ and Fitness+, is up to $37.95 from $32.95.
But, the Cupertino, California-based company isn't the trailblazer in the price-hike territory. Streaming giants like Netflix and Disney helped pave the way with their recent subscription rate increases.
Still, Apple's pricing remains competitive in the crowded streaming market. While Apple TV+ doesn't offer an ad-supported tier, its $9.99 monthly cost undercuts several rivals' premium, ad-free offerings.
For context, Netflix's premium tier is the most expensive at $22.99, whereas Apple TV+ is cheaper than both Amazon Prime Video's $14.99 and Hulu's $17.99 premium versions. On the other end, Discovery+ and ESPN+ offer their premium versions for $8.99 and $12.99, respectively.
"Apple is trying to pull some moves right before a poor earnings report," one X user opined as the company is set to issue fourth-quarter earnings on November 2. Another voiced concerns over the aggressive pricing approach, especially given the absence of a lower-priced ad-supported tier.
Yet, some also see merit in the hike, pointing to the quality of Apple TV+'s original content.
Given Apple's vast user base and its role in shaping market trends, its price changes might ripple to providers like Paramount+ and ESPN+ which offer ad-supported services starting at $4.99.
More to that, for the average user, juggling multiple streaming and service subscriptions, budget allocations for digital entertainment might need a rethink. As of now, it would cost you $57.92 per month to pay for the ad-supported version of the top ten streaming services, and $141.90 for the premium versions.
Uncommon Knowledge
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