Apple TV+ and Apple One Subscriptions See Price Hikes
Apple has increased the monthly and annual subscription prices for Apple TV+ and its Apple One bundle. The hikes, which vary by plan, come as the company focuses on boosting its services revenue.
Apple announced new pricing for its popular subscription services, Apple TV+ and Apple One, effective August 28, 2026. The streaming service, Apple TV+, will now cost $15 per month, a $2 increase from its previous $13 monthly rate. Annual subscriptions for Apple TV+ have also risen by 20 percent, from $99 to $119 per year. Subscribers will receive a month's notice before the new charges take effect, according to Variety.
The price adjustments extend to the Apple One bundles, which combine multiple Apple services. The individual Apple One plan now costs $22 per month, up from $20. Family plans have also seen an increase, moving from $26 to $28, and the top-tier Premier plan is now $40 monthly, a $2 jump from $38. These changes follow recent price increases for Apple Music, which rose from $11 to $13 last month, and reflect a broader strategy by Apple to grow its services division.
Services Revenue Becomes Key Focus
The strategic shift towards prioritizing services revenue is evident in Apple's financial reports. In the quarter ending June 27, 2026, services accounted for 28.1 percent of Apple's total revenue, a significant portion compared to the 71.9 percent generated by hardware sales. Furthermore, the cost of sales for services was disproportionately lower (13.7 percent) than for hardware (86.3 percent), making it a more appealing area for profit generation.
Apple TV+ launched in 2019 at a monthly price of $5, aiming to compete in the increasingly crowded streaming market. Despite its ad-free model and competitive pricing compared to rivals like Netflix (starting at $20/month for ad-free) and Disney+ (starting at $19/month for ad-free), the service has faced challenges. A 2025 report by The Information suggested that Apple TV+ was the company's only unprofitable service, reportedly losing over $1 billion annually and not expected to reach profitability for at least a decade. This situation is compounded by its smaller content library relative to major competitors.
The decision to increase prices, particularly for a service that has struggled with profitability, is likely an effort to improve the financial performance of Apple TV+. While the service was initially conceived as a gateway to other Apple services, it appears the company now seeks more direct financial returns. Without the option of advertising revenue, small, incremental price hikes represent the most straightforward method for Apple to boost income from its streaming platform. However, this approach carries the risk of alienating potential new subscribers or causing existing ones to reconsider their subscriptions, especially given the service's comparatively limited content offerings.