Apple Is Picking Low-Hanging Fruit With Another Apple TV Price Increase
Happy Wednesday. Let's jump right into today's article.
Apple Is Picking Low-Hanging Fruit With Another Apple TV Price Increase
Despite another 15% increase, Apple TV continues to offer best-in-class value.
In what has become the norm in video streaming land, Apple announced another subscription price increase to Apple TV. Given several factors and industry developments, the move strikes me as low risk for Apple.
Last week, the following Apple TV price changes went into effect immediately:
Monthly: $12.99 -> $14.99
Annual: $99 -> $119
Apple One bundle (Individual): $19.95 -> $21.95
In August 2025, Apple announced a substantial 30% increase to monthly Apple TV pricing ($9.99 -> $12.99). Annual subscription pricing remained steady at $99 with Apple One pricing also staying put. By increasing the pricing delta between monthly and annual subscriptions, Apple appeared to be nudging monthly Apple TV subscribers to switch to annual subscriptions and bundles. The motivation behind such a push would be to use price savings as a carrot to improve churn. Monthly Apple TV subscribers likely register higher churn rates than what is seen with annual Apple TV subscribers. Instead of being unique to Apple TV, such churn behavior is industry wide. After years of price increases, subscribers continue to embrace the idea of switching between services throughout the year.
Last week’s Apple TV subscription price hikes are different from last year’s increase in that
This article is available exclusively to Above Avalon members. Become a member using the payment forms ($20/month or $200/year) below. Members can continue reading this article here.
An audio version of this article is available to members who have the Podcasts add-on (+$10/month or +$100/year) attached to their Above Avalon membership.
For more information on Above Avalon membership, go here.
Member Privileges and Benefits
Exclusive Analysis. Receive Neil’s exclusive daily articles containing analysis and perspective, 100% related to Apple. Neil is widely considered to have the best understanding of Apple’s business and financial strategy with his research and perspective consumed both within and outside of Apple.
Priority Email Access. Receive timely responses to all email questions and inquiries to Neil.
Archive Access. Read ~2,000 articles previously sent to members. The archive can be viewed here.
Forum Access (Discord). Join other Above Avalon members in a forum containing in-depth discussion and Apple debate. The forum can be accessed here. While the form is available to everyone, members have exclusive access to certain channels in addition to receiving special distinction. Neil personally moderate and oversee the forum.
Above Avalon Support. Play an active role in supporting Above Avalon as an independent source of Apple analysis. Above Avalon is fully sustained by its members.