Apple TV+ Raises Monthly Price to $13 for US Users Amid Expansion of Original Content

Apple TV+ is raising its US subscription price by 30% to $12.99/month, citing its growing library of original content, including new shows and live sports. The change affects both new and existing subscribers, with current users seeing the increase on their next bill. The move aims to differentiate the service in a competitive streaming market.

Apple TV+, the streaming service by Apple Inc. (AAPL), has announced a significant price increase for its US subscription. Effective July 2025, the monthly subscription fee will rise to $12.99, a 30% increase from the previous $9.99. This adjustment affects both new and existing subscribers, with the price hike taking effect on the next billing cycle for current users.

The move comes as Apple aims to differentiate its streaming service in a highly competitive market dominated by giants like Netflix, Disney+, and Amazon Prime Video. Apple TV+ has been working to expand its content library, including new shows and live sports, to enhance its appeal to subscribers.

According to a Reuters report, Apple TV+ is estimated to have reached 40.4 million subscribers at the end of 2024 [1]. This figure, while substantial, still lags behind Netflix's over 300 million paid memberships as of the end of 2023. Apple has been investing heavily in content, spending more than $5 billion annually since launching Apple TV+ in 2019, but has recently trimmed this expenditure by around $500 million [1].

The price increase is part of Apple's strategy to generate more revenue from its streaming service. Apple TV+ has faced challenges in attracting and retaining subscribers compared to its competitors. The new price point is expected to help Apple recoup some of the costs associated with content production and distribution.

In terms of market dynamics, Apple faces strong competitive rivalry in the streaming market. The Five Forces analysis of Apple Inc. highlights the intense competition and the strong bargaining power of buyers, which can influence Apple's pricing strategy [2]. The strong force of competitive rivalry is evident in the presence of major competitors such as Netflix, Disney+, and Amazon Prime Video, all of which offer a wide range of content and competitive pricing.

While Apple's subscription price increase may impact subscriber numbers, it aligns with the company's broader strategy to differentiate its services and generate more revenue. As Apple continues to invest in content and technology, the streaming market will remain a critical area for growth and innovation.

References:
[1] Reuters. "Apple boosts subscription price for Apple TV+." Yahoo Finance. https://finance.yahoo.com/news/apple-boosts-subscription-price-tv-164055415.html
[2] Panmore. "Apple Inc. Five Forces Analysis (Porter’s Model) Case Study." Panmore. https://panmore.com/apple-inc-five-forces-analysis-porters-model-case-study