Apple boosted the prices of some of its subscription services, in line with the price increases implemented by other streaming services.Apple TV+ is now priced at $9.99, up from $6.99; comparable raises will be seen in Apple One, Arcade, and News.Services revenue is an important revenue source for Apple, helping it demonstrate to Wall Street how it is monetizing its 2 billion devices.
On Wednesday, Apple increased the costs of several of its main services, such as Apple TV+, Arcade and the bundle package Apple One. This follows preceding price hikes in October 2022. The rate of Apple TV+ is now $9.99 per month, up from $6.99. Prior to this, Apple had raised the price in 2022 from $4.99. The yearly package will now be priced at $99, which is more than the past $69. Furthermore, the bundle package Apple One is increasing, and the top-end Premier package will cost $37.95 monthly. Additionally, the monthly fees for Apple Arcade and News+ have risen to $6.99 and $12.99, respectively.
An Apple spokesperson expressed to CNBC: "The subscription prices for Apple TV+, Apple Arcade, Apple News+, and Apple One will increase in the US and certain international markets from today. Existing subscribers will encounter these price rises 30 days later, on their next renewal date."
These products are part of the Apple services business that generated $21.21 billion in the company's third fiscal quarter, making it Apple's second-largest business after the iPhone, which contributed $39.67 billion in revenue during said period. This business is very profitable and significant to investors as it reflects how Apple is gaining profit from its 2 billion active devices by offering them subscriptions, streaming TV, warranties, advertisements, payment services and other products from the segment.
The increases in cost are comparable to those made by other major media organizations such as Disney and Netflix. Apple noted that its subscription services have added content recently, including the tripling in number of titles in Apple Arcade since 2019 and the addition of 100 newspapers and magazines to Apple News+.
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.
Be sure to check out these CNBC PRO stories:
If you're looking to retire in 5 years, see how to invest for it, according to the pros
Morgan Stanley claims the average stock is failing, S&P 500 to drop to 3,900 by the end of the year
This highly lucrative industry is thriving as the population ages
This chip stock is receiving a lot of love from Wall Street, and it's not Nvidia
top of page
bottom of page
Comments