Apple TV is getting more expensive.
Apple has raised the monthly price of its streaming service from $12.99 to $14.99, while the annual subscription has increased from $99 to $119.
The latest increase moves Apple TV closer to the pricing of major competing streaming platforms and marks another step in Apple’s effort to grow its services business.
Apple One Also Gets More Expensive
The price increase extends to Apple One, Apple’s subscription bundle that combines services such as Apple TV, Apple Music and iCloud storage.
The individual Apple One plan now costs $21.95 per month, up from $19.95.
For subscribers already paying for several Apple services separately, the bundle may still offer value. But the latest adjustment means customers will pay more to maintain access.
From $4.99 to $14.99
The increase represents a significant change from Apple TV’s launch pricing.
When the service debuted in 2019 as Apple TV+, Apple charged just $4.99 a month.
Since then, Apple has expanded its catalogue with original films and series, including the blockbuster racing film “F1” and the returning comedy series “Ted Lasso.”
The company has gradually increased the service’s price as its content library and ambitions in streaming have grown.
In seven years, the monthly price has effectively tripled.
Another Apple Service Gets a Price Increase
The Apple TV adjustment follows a separate increase for Apple Music.
Apple raised the music service’s monthly price by $1 in July, citing higher licensing costs.
The successive increases suggest Apple is continuing to place greater emphasis on monetising its growing services ecosystem.
Services Remain a Major Business for Apple
Apple reported $30.7 billion in services revenue in its third quarter, representing 12% growth.
However, the services division’s gross margin declined by more than one percentage point from the previous quarter. Apple attributed the change to differences in its product mix and foreign-exchange pressures.
Services have become increasingly important to Apple’s overall business, spanning subscriptions, cloud storage, music, payments and other digital offerings.
The company has described services as a major area of focus during Tim Cook’s tenure as CEO.
What the Price Hike Means for Subscribers
For Apple TV customers, the calculation is becoming simpler: the service now costs significantly more than it did at launch, but Apple is betting that its expanding catalogue can justify the higher price.
The bigger question is whether subscribers will continue paying as streaming competition intensifies.
At $14.99 a month, Apple TV is no longer positioned as the inexpensive newcomer it was in 2019.
It is increasingly competing as a premium streaming service—and Apple is pricing it accordingly.