In response to the competitive streaming landscape, Apple has announced an increase in prices for some of its subscription services. This move follows similar actions from other entertainment giants, as they navigate the evolving industry.
As of Wednesday, Apple has raised the prices for Apple TV+, Apple Arcade, and Apple News+ in the United States and select international markets. The adjustments come after the tech company previously raised prices for Apple TV+ and Apple Music in October 2022.
For Apple TV+, the monthly cost to enjoy popular shows like The Morning Show and Ted Lasso has been raised to $9.99 from $6.99. Similarly, Apple Arcade now costs $6.99 per month (previously $4.99), and Apple News+ subscription is now priced at $12.99 per month (previously $9.99).
Apple shared its commitment to providing the best possible experiences for its customers through the consistent addition of high-quality entertainment, content, and innovative features to its services.
Shares of Apple experienced a 1% decline on Wednesday, trading at $171.75. However, the stock has gained an impressive 32% this year.
Notably, Apple is not alone in raising streaming prices. Netflix recently increased the monthly prices for its Premium and Basic plans in the U.S., while Disney elevated the price of its Disney+ Premium plan earlier this month. Discovery+ also made price adjustments to its ad-free monthly subscriptions on October 3rd.
According to Evercore ISI analyst Amit Daryanani, these price hikes by Apple may just be the beginning. Daryanani anticipates that Apple will continue to raise prices, considering it currently lags behind competitors like Netflix ($15.49) and Max ($15.99). Daryanani rates Apple's stock as Outperform with a price target of $210.
In conclusion, Apple's move to increase prices for its subscription services reflects the ongoing dynamics of the streaming industry. As competition intensifies, it appears that Apple is leveraging price adjustments as a means to enhance its position and financial performance.
