Apple raises price of Apple TV+ to $9.99 a month
- Apple increased the prices of several of its subscription offerings, mirroring price hikes by other streaming platforms.
- Apple TV+ will now cost $9.99, up from $6.99; similar hikes will impact Apple One, Arcade, and News.
- Services revenue is a major revenue generator for Apple, and helps the company show Wall Street how it is monetizing its 2 billion devices.
Apple on Wednesday raised the prices for a number of its flagship services offerings, including Apple TV+, Arcade and its bundled offering, Apple One. The move follows prior price hikes in October 2022.
Apple TV+ will now cost $9.99 a month, up from $6.99. The price increase comes after Apple upped the price in 2022 from $4.99. The annual package will now cost $99, up from $69.
Apple One, the bundle package used by many families to access Apple's services at a lower price will also increase, with the top-end Premier package now costing $37.95 a month.
Apple's Arcade and News+ monthly prices are also increasing, to $6.99 and $12.99, respectively.
"The subscription prices for Apple TV+, Apple Arcade, Apple News+, and Apple One will increase in the US and select international markets beginning today," an Apple spokesperson told CNBC. "Existing subscribers will see these price increases 30 days later, on their next renewal date."
All these products form a part of Apple's services business. The segment generated $21.21 billion in revenue during the company's fiscal third quarter, making it Apple's second-largest business behind the iPhone, which generated $39.67 billion during the same time period.
The business is extremely profitable, and important for investors because it signals how Apple is monetizing its active base of 2 billion devices by selling them subscriptions, streaming TV, warranties, advertising, payment services and other products included in the category.
The price increases mirror those made by other major media players, including Disney and Netflix.
In a statement, Apple said that its subscription services had added content in recent months, saying that the number of titles on Apple Arcade had tripled since 2019, and that Apple News+ had added 100 additional newspapers and magazines since launching.
— CNBC's Kif Leswing contributed to this report.
Correction: The iPhone generated $39.67 billion in revenue during Apple's fiscal third quarter. An earlier version misstated the figure.
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