Apple (AAPL) Just Hiked Apple TV+ Prices by $3 - Here’s What It Means for Your Wallet

Apple tightens the screws on streaming subscribers with surprise price increase.

The Streaming Squeeze

Apple TV+ subscribers just got a $3 monthly surprise from Cupertino - the service now costs 40% more than its original launch price. No new features announced, no expanded content library teased—just pure, unadulterated corporate pricing power in action.

Wall Street's Favorite Move

Because nothing makes analysts happier than watching a tech giant flex its subscription revenue muscles. While crypto projects get crucified for tokenomics adjustments, traditional companies get standing ovations for literally charging more for the same product. The math checks out—if you're a shareholder.

Your move, Netflix.

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It is worth noting that Apple TV+ has built a reputation for hit original content, such as Severance, Ted Lasso, and The Morning Show. Severance alone received 27 Emmy nominations this year. However, the service still lags far behind major competitors like Netflix (NFLX), Disney+ (DIS), and Amazon (AMZN) Prime Video in terms of total subscribers. Apple doesn’t publicly release its subscriber numbers, but analysts estimate that Apple TV+ had 40.4 million subscribers by the end of 2024, compared to Netflix’s massive 300 million-plus.

Nevertheless, this is Apple TV+’s second price increase in less than two years (the previous one happened in October 2023). Meanwhile, Peacock raised its own subscription rates by $3 in July. Despite these price hikes, Apple continues to lose over $1 billion annually on Apple TV+, according to The Information. Interestingly, since its 2019 launch, Apple has spent more than $5 billion a year on content but trimmed that figure by around $500 million last year in an effort to control losses.

Is Apple a Buy or Sell Right Now?

Turning to Wall Street, analysts have a Moderate Buy consensus rating on AAPL stock based on 16 Buys, 11 Holds, and one Sell assigned in the past three months, as indicated by the graphic below. Furthermore, the average AAPL price target of $239.60 per share implies 6.5% upside potential.