Apple TV+ Price Hike Opens Door to Ad-Supported Tier: What You Need to Know

Apple TV+ has increased its monthly subscription price by 30% to $12.99, potentially opening the door to an ad-supported plan. The service previously launched at $4.99/month and had a free trial window. A rumored ad-supported tier could offer a lower price point of $6.99/month, similar to Disney+.

Apple Inc. (AAPL) has announced a significant price hike for its streaming service Apple TV+, raising the monthly subscription cost to $12.99 from $9.99. This 30% increase, effective Thursday, comes as Apple TV+ continues to lag behind competitors such as Netflix, Disney+, and Amazon Prime Video in terms of subscriber numbers. The new pricing structure will apply to new subscribers in the U.S. and select international markets, while existing subscribers will see the higher rates within 30 days of their next renewal date [1].

The price adjustment follows a similar move by Comcast-owned NBCUniversal's Peacock, which raised its prices by $3 in July. Apple TV+ is known for its high-quality original content, including the psychological thriller 'Severance', which garnered 27 Emmy Award nominations this year, and popular shows like 'Ted Lasso' and 'The Morning Show'. However, the streaming service has struggled to attract a large subscriber base, with estimates suggesting it reached 40.4 million subscribers by the end of 2024, significantly behind Netflix's 300 million paid memberships [1].

Apple's decision to raise the price comes amid reports that the company is losing more than $1 billion annually on Apple TV+. Despite spending over $5 billion a year on content since launching the service in 2019, Apple has not commented on the financial details of Apple TV+. The company has reduced its content budget by approximately $500 million last year but continues to invest heavily in premium programming [2].

The price increase could pave the way for an ad-supported tier, which would offer a lower price point of $6.99 per month, similar to Disney+. This move would align with Apple's strategy to expand the service's reach and increase brand awareness beyond its iOS ecosystem. In February, Apple launched the TV+ app on Android devices, aiming to tap into the 1.5% of Android’s installed base, which could potentially generate $2 billion in revenue [2].

Apple TV+ has maintained its annual subscription rate at $99.99 and kept the Apple One bundle pricing at $19.95 monthly. The latest price hike is the third in the last three years, with previous increases in October 2023 and 2022 [3]. The company has also highlighted upcoming premieres, such as Season 4 of 'The Morning Show' and the original film 'Highest 2 Lowest', to justify the price increase [3].

In conclusion, Apple's decision to raise the price of Apple TV+ reflects its ongoing efforts to balance content investment and revenue generation. While the service continues to struggle with subscriber numbers, the price hike could help Apple recoup its significant content spending and potentially open the door to an ad-supported tier.

References:
[1] https://finance.yahoo.com/news/apple-boosts-subscription-price-tv-164055415.html
[2] https://www.benzinga.com/markets/tech/25/08/47276876/apple-tv-hikes-price-30-to-12-99-as-streaming-losses-reportedly-top-1-billion
[3] https://variety.com/2025/tv/news/apple-tv-plus-price-increase-streaming-subscription-1236494949/