Apple recently announced that it’s increasing the monthly price of a subscription to Apple TV+ from US$4.99 to $6.99. This 40% price hike is the first time the streamer has raised its price since launching in 2019. The platform’s $4.99 sticker price made it one of the most affordable streamers in the U.S., even considering its smaller catalog size relative to competitors, says The Wrap. And the industry publication says the price hike is justified.
The Wrap says that when you look at how demand for all shows available on the platform has changed since 2021 this is measurably true. Demand for shows on Apple TV+ more than doubled from January 2021 to September 2022, according to Parrot Analytics‘ data, which takes into account consumer research, streaming, downloads and social media, among other engagement.
From The Wrap: From this perspective, Apple TV+ is making good on its value proposition to subscribers. The rapid growth in both the amount of content on Apple TV+ and the total demand for its catalog appears to justify the price hike. Even at the new price, the platform is still among the cheapest ad-free plans available — now tied with Discovery+, whose ad-free tier also costs $6.99.
A benefit of Apple TV+’s focus on building out a platform of must-watch original content is that all this content is exclusive to the platform. Therefore, while Apple TV+’s total catalog might be smaller than other streamers’, its ability to draw in subscribers punches above its weight because all of this content is only available on Apple TV+.
Justified until people have to choose among their streaming services and some are cut loose. Increased demand is a poor reason to increase price taking away from the value it once offered.