Apple announced Thursday that it is raising the monthly subscription price of Apple TV+ by 30 percent to $12.99, marking the third price increase since the streaming service launched in 2019. The hike takes effect immediately for new subscribers and will apply to existing customers within 30 days of their next billing cycle.
The price jump comes as Apple faces mounting pressure from a rapidly expanding landscape of free streaming options. Services like Tubi, Pluto TV, and Sling Freestream now offer thousands of hours of content without subscription fees, supported entirely by advertising revenue. These platforms have gained significant traction among budget-conscious consumers, with some offering over 600 live channels and tens of thousands of on-demand titles at no cost.
Apple TV+ originally debuted at $4.99 per month in November 2019, but the company has steadily increased prices as it expanded its content library. The service jumped to $6.99 in 2022, then to $9.99 in 2023, and now sits at $12.99. Despite these increases, Apple maintains that it offers exceptional value through its ad-free model and premium original programming.
Since it launch, Apple TV+ has expanded its deep library of hundreds of Apple Originals, with thousands of hours of premium programming across genres and brand-new releases weekly — all ad-free, the company said in a statement. The service remains the only major streaming platform that does not offer a reduced-price, ad-supported tier.
The price increase comes amid reports that Apple is losing more than $1 billion annually on the streaming venture. The Apple TV+ premium subscription service is losing more than $1 billion per year, according to an anonymously sourced report by The Information published Thursday. The tech giant is spending around $4.5 billion on content annually, down from $5 billion in past years, according to the article.
With approximately 45 million subscribers, Apple TV+ commands less than 1 percent of total U.S. streaming viewership, according to industry data. This puts it far behind competitors like Netflix, which holds about 8.2 percent of viewing time, and Amazon Prime Video at 3.5 percent.
The streaming landscape has become increasingly crowded, with traditional media companies launching their own platforms while simultaneously expanding free offerings. YouTube TV, Hulu + Live TV, and other live television streaming services now compete directly with cable packages, while free services have proliferated across virtually every content category.
Free streaming platforms have capitalized on subscription fatigue among consumers who increasingly juggle multiple monthly entertainment bills. Sling Freestream offers over 600 live channels, MyFree DIRECTV provides more than 100 channels, and newer entrants like Chick-fil-A Play have emerged to serve specific audiences without subscription requirements.
Apple’s annual subscription plan remains unchanged at $99.99, and the company is not adjusting prices for its Apple One bundle, which combines Apple TV+ with other services like Apple Music and iCloud storage starting at $19.95 monthly. The tech giant also continues to offer three-month free trials with purchases of new Apple devices.
The price hike reflects broader industry trends as streaming companies seek profitability after years of heavy content investment. Disney+, Netflix, and HBO Max have all raised prices in recent years, while simultaneously introducing advertising-supported tiers to capture price-sensitive customers.
For Apple, the streaming service represents part of a broader strategy to diversify revenue beyond hardware sales. The company’s Services division, which includes Apple TV+, generated $96 billion in revenue for fiscal 2024, making it one of Apple’s fastest-growing segments despite the streaming losses.
Apple TV+ has earned critical acclaim for original series like “Ted Lasso,” “Severance,” and “The Morning Show,” along with films including the Oscar-winning “CODA.” The service recently renewed “Ted Lasso” for a fourth season and saw “Severance” become its most-watched series ever during its second season finale.
However, the platform faces the challenge of competing not just against other paid services, but against an expanding universe of free alternatives that require no monthly commitment. As subscription costs across the entertainment industry continue rising, free streaming platforms may increasingly appeal to consumers looking to reduce their monthly expenses while maintaining access to quality content.