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Apple TV+ Subscription Price Increasing From $10 to $13 Per Month, but the Annual Price Remains Unchanged at $99
Benjamin Mayo, 9to5Mac:
Apple today announced that the monthly price of Apple TV+ is rising in the United States and some international markets. From today, the monthly subscription will cost $12.99, up from $9.99.
Existing subscribers will see the price change 30 days after the next renewal date. The pricing for yearly TV+ subscriptions and the Apple One services bundle remains unchanged.
The annual price for a standalone TV+ subscription — unchanged, as Mayo reports — remains $99. The usual rule-of-thumb for subscriptions of any sort seems to be to charge 10× the monthly rate for an annual subscription. That’s exactly where the TV+ month/annual prices were before today. Now, the annual subscription price isn’t just a little bit cheaper than 12× the monthly price ($156), but a lot cheaper.
This seems to be a clear sign that streaming services are different than most subscriptions. People subscribe to newspapers or blog/newsletters and they stay subscribed, because they want to read regularly. Same for a music subscription, like Spotify or Apple Music — people want to listen to music all the time. Churn is just naturally higher with streaming video — people subscription hop. Subscribe, catch up on all the exclusive content you’ve missed, then unsubscribe. Subscribe again when there are a few more exclusive shows you’ve missed again. Unsubscribe again. And Apple TV+ has been reported to have higher than average churn. So I think today’s price hike, affecting only the monthly price, is about dealing with that. If you want to subscription hop, Apple TV+ is going to cost a bit more. If you want to stay subscribed to Apple TV+, you really ought to subscribe annually (or subscribe to Apple One and get Music, Arcade, and additional iCloud storage bundled together).
Fox One Streaming Service Launches
Fox (capitalization verbatim):
Fox Corporation today announced the official launch of FOX One, a bold new streaming service that brings together the full portfolio of FOX’s News, Sports and Entertainment branded content — all in one place, both live and on demand.
Available today across major web, mobile and connected TV platforms, FOX One is priced at $19.99/month with a 7-day free trial or $199.99/year, with the option to add-on B1G+ or bundle FOX Nation for an even greater value. Starting October 2, customers will also have the opportunity to bundle FOX One with ESPN DTC Unlimited for $39.99/month.
I just mentioned yesterday, re: MS NOW’s idiotic backronym, that Fox often styles its name in all caps without pretending the f-o-x letters stand for anything. Anyway, $20/month seems steep, but Fox carries a lot of sports.
Apple is promoting the launch prominently in the App Store (including Fox’s preferred all-caps styling), no doubt because Fox — unlike certain well-established streaming services — offers its subscriptions via IAP.