Apple TV hikes prices in US as streaming service gets more expensive

Apple is making it more expensive for Americans to watch Shrinking, Ted Lasso, Pluribus, and its growing catalogue of original films and shows, with the company raising subscription prices in the US from Friday, 28 August.

Apple TV raises subscription prices for the fourth time

The monthly Apple TV subscription will now cost $14.99, up from $12.99, while the annual plan has increased to $119 from $99. The new rates apply to both new and existing subscribers.

Apple said existing customers will be notified approximately one month before they are charged the new price.

This is the fourth price increase for Apple TV, formerly known as Apple TV+, in four years. The latest rise also puts the service at three times its original monthly price of $4.99, which was introduced when Apple launched the platform in 2019 with a much smaller library.

There is another increase for customers who use Apple One. The individual tier of the bundle, which includes Apple TV, Apple Music, iCloud+ with 50 GB of storage and Apple Arcade, is rising from $19.95 to $21.95 a month.

The move comes amid a broader reset in the streaming market. Prices have been climbing across the industry as services attempt to improve profitability and offset the substantial cost of producing and acquiring content.

Netflix, HBO Max, Disney+, Hulu, Paramount+ and YouTube Premium have all raised prices over the past two years. NBCUniversal’s Peacock increased its rates earlier this month, while ESPN is due to raise its streaming prices from 17 September.

Apple TV remains unusual among the major premium streaming platforms because it does not currently offer an ad-supported subscription tier.

The price increases also come as Apple’s streaming operation has expanded considerably since its launch. Apple TV now carries more than 300 original television shows and films, compared with the handful of titles available when the service first debuted.

Its catalogue includes comedy series Ted Lasso, The Studio and Shrinking, alongside drama and thriller titles such as Severance, Pluribus and The Morning Show. This year, Widow’s Bay became the most Emmy-nominated freshman series.

For Apple, the higher prices mark another step in the evolution of a service that initially relied on a relatively small collection of prestige programming to draw subscribers. The latest increase takes effect immediately for new customers, while existing subscribers will move to the higher rates after receiving advance notice.