Apple is raising the price for several of its subscription services including Apple TV+, Apple Arcade, and Apple News+. The increases come as the tech giant continues to invest heavily in creating original content and features across its growing services segment.

Effective immediately, Apple TV+ prices will jump from $6.99 to $9.99 per month. The streaming service’s annual plan will also rise from $69 to $99. MacRumors, a well-known website that tracks news concerning the Cupertino-based tech company, first published the news upon reviewing the firm’s pricing pages.

Apple TV+ offers acclaimed original shows and movies like Ted Lasso, Severance, and CODA. The platform has rapidly expanded its content library since it was launched in 2019.

Apple Arcade, the company’s gaming subscription, will raise its subscription price from $4.99 to $6.99 monthly. Arcade grants unlimited access to over 200 titles with no ads or in-app purchases.

Both services will see their first price hikes since debuting three years ago. Meanwhile, Apple News+ is increasing its cost from $9.99 to $12.99 per month. The news and magazine subscription service originally cost $9.99 at launch.

In addition, Apple is raising prices for its bundled Apple One plans:

  • Individual: $16.95 to $19.95 per month
  • Family: $22.95 to $25.95 per month
  • Premier: $32.95 to $37.95 per month

Apple One bundles all of these services together, including Apple Music, TV+, Arcade, News+, and iCloud storage. The price increases mirror those performed on the individual services.

The changes apply immediately to new subscribers. Existing users will see hikes take effect in 30 days once their next renewal is due. Apple will notify current subscribers via email ahead of their renewal date.

In a statement, Apple (AAPL) said that these price increases reflect its ongoing effort to expand its portfolio of premium entertainment alternatives, top-notch content, and features across its services portfolio.

Hit Shows and a Robust Proprietary Ecosystem Help Apple Market its Services Efficiently

Apple TV+ has grown rapidly since its initial launch, reaching over 25 million subscribers according to analyst estimates. Estimates also indicate that more than 1 billion users have reportedly subscribed to at least one of Apple’s services.

Propelled by hit shows like the comedy Ted Lasso and sci-fi drama Severance, Apple is investing heavily in new exclusive content. The streamer is expected to spend over $6 billion on original programming every year.

Meanwhile, Apple Arcade has tripled its game catalog since 2019 with over 200 titles now available. The mobile gaming service offers users ad-free access to games across Apple devices.

Recent releases include World of Demons and Air Twister. Arcade enables Apple to court mobile gamers without relying as much on third-party titles within the iOS App Store.

Apple News+ has also expanded since its debut, increasing its magazine and newspaper offerings by over 100 publications. Users can access premium news content from The Wall Street Journal, The Los Angeles Times, and other top-notch outlets by subscribing to the service.

The price increases indicate Apple’s confidence in providing value via its rapidly growing services business. While hardware sales still dominate revenues, services help Apple diversify its revenue base and increase its margins.

Apple’s Services Segment is a Gargantuan Business by Itself

During the first nine months of Apple’s 2023 fiscal year, the company’s service revenues stood at $62.89 billion – a 7% year-on-year increase.

Apple’s CEO Tim Cook has stressed on multiple occasions that this segment alone is growing rapidly to become a sound standalone business with a financial performance comparable to some of the most successful Fortune 500 companies.

Major services driving growth include the App Store, Apple Music, cloud services, and AppleCare support plans. The segment provides crucial recurring subscription revenue to the company.

Apple is evolving into more of a services company, leveraging its vast installed base of over 2 billion devices. Price rises for Apple TV+, Arcade, and News+ enable the tech firm to further monetize its ecosystem.

Other Streaming Platforms Are Also Hiking Their Prices

Apple’s moves mirror recent price hikes from other streaming platforms. This year, Netflix raised its subscription prices across various plans in multiple latitudes by $1 to $2.

Disney also increased the price of its ad-free Disney+ subscription in December 2022 while Discovery+ went up to $9 monthly earlier this month. With increasing competition in the streaming space, providers are balancing larger content investments with higher subscription costs.

Apple TV+ had room to increase its pricing after launching at an aggressive $4.99 price point to attract early adopters. But $9.99 per month positions it as a premium streaming option. The news and gaming subscriptions face less competition, enabling Apple to capture more revenue from unique services.