Apple CEO Tim Cook spoke about the recent surge in subscriptions to the company’s streaming service, Apple TV+. According to him, the adjustment is the result of an increase in the number of products offered by the service.
Cook said, “If you look at when we first priced it, we only had a few series. We were in the beginning. We were very focused on just the originals and so we had four or five series and the price was very low,” Cook said in a video call with shareholders. “Now we have a lot of content and we release more every month. That’s why we increased the price to represent the value of the service.”
An Apple TV+ subscription will increase from $4.99 to $6.99 per month in the US, up 40% from the original price. In Brazil, the value increased from R$9.90 to R$14.90.
Apple TV+ has earned value for its content this year with an Academy Award win for “The Rhythm of the Heart” — a film that was exclusive to the US streaming service only — and with “Ted Lasso” the second-in-a-row for Best TV. Comedy series at the Emmy Awards.
Cook also noted the “enthusiasm and strong engagement” of service subscribers. According to him, “Apple TV+ songs like ‘Rupture’, ‘Bad Sisters’ and ‘Black Bird’ have taken center stage all over the world. Baseball fans have stuck to their seats this season watching Friday Night Baseball.”
In addition, the company’s chief financial officer, Luca Maestri, highlighted Apple’s global partnerships with major football leagues. Starting next season, fans will be able to stream all MFL games, the Major League Soccer, through the Apple TV app.
Apple does not disclose subscription numbers for any of its services, which include cloud storage, payments, and other businesses. But Maestri said the total is more than 900 million – up from 155 million in the past 12 months and double what it was three years ago. Apple TV + will have between 20 and 40 million subscribers.
It is worth noting that it is not only Apple TV + that will increase prices. The company’s other services, such as Apple Music and Apple One, will also undergo a readjustment.
“The cost of licensing has increased and that is why we pay more for the music. The good thing is that the artists will also get more money for their music that is liked in live,” justifies Cook.
In all, Apple services generated $19.1 billion in revenue in the fourth quarter and $78.1 billion for the year. Products like the iPhone, Mac, and iPad, among others, generated $71 billion in sales in the quarter and $316 billion in the year.
So, unlike the big tech competitors, the company celebrated good earnings in the quarter.
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