Apple and Netflix are raising prices for their streaming services to cover increased costs and invest in more content.
Why it matters
The price increases by Apple and Netflix reflect the ongoing challenges faced by streaming services to generate revenue and invest in content. This is significant as it impacts the affordability and value proposition of these services for consumers.
What the papers say
The Independent says Apple is significantly increasing the price of its TV streaming service, along with other services, to cover increased costs and make more programs. AP News reports that Apple is raising the prices for its AppleTV+ streaming and Arcade gaming plans, as well as its bundled Apple One service, to cover increased costs. The NY Post highlights that Netflix's ad-supported tier has reached 15 million active users per month, a year after its launch, as the company continues to hike prices on its ad-free options.
How we got here
Streaming services have been facing increasing competition and the need to invest in content to attract and retain subscribers. Both Apple and Netflix have been raising prices to generate more revenue and cover the costs of producing original programming.
More on these topics
Netflix, Inc. is an American technology and media services provider and production company headquartered in Los Gatos, California. Netflix was founded in 1997 by Reed Hastings and Marc Randolph in Scotts Valley, California.
Apple Inc. is an American multinational technology company headquartered in Cupertino, California, that designs, develops, and sells consumer electronics, computer software, and online services.
Apple TV+ is an ad-free subscription video on demand web television service of Apple Inc. that debuted on November 1, 2019. It was announced during their March 25 Apple Special Event held at Steve Jobs Theater, where celebrities involved with Apple TV+ pr