Apple is raising the monthly cost of Apple TV+ by $3, marking the streaming service’s first price increase in nearly two years.

Starting Thursday, Apple TV+ will cost $12.99 a month, up from $9.99, for new U.S. subscribers and certain international markets. Existing customers will see the increase to their bills 30 days after their next renewal date, according to the company.

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The price of the annual subscription for Apple TV+ remains the same, as does the cost of Apple One – a bundled subscription service that brings together several services including Apple TV+, Apple Arcade and more.

The tech giant most recently raised the price of Apple TV+ in October 2023.

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“Since its launch, Apple TV+ has expanded its deep library of hundreds of exclusive Apple Originals, with thousands of hours of premium programming across genres and brand-new releases weekly – all ad-free,” Apple said.

While Apple TV+ hosts popular shows such as “Severance” and “Ted Lasso,” the streaming service has trailed competitors like Netflix and Disney+ in subscriber numbers, Reuters reported.

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Apple TV+ is estimated to have reached around 40 million subscribers by the end of 2024, according to a Visible Alpha poll of five analysts. Meanwhile, Netflix had more than 300 million in the same time period, Reuters reported.

The iPhone maker is losing over $1 billion annually on Apple TV+, The Information reported in March.

In a move to boost subscribers, Apple expanded its streaming service to Android phones earlier this year, Bloomberg News reported.

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Peacock similarly raised the cost by $3 of its premium plus plans and ad-supported plans in July.

Apple is raising the price of a subscription to its Apple TV+ streaming service for U.S. customers.

The technology giant said Thursday that an Apple TV+ subscription will now cost $12.99 a month, up from $9.99. The annual cost for Apple TV+ will remain $99.99.

The new pricing takes effect for new subscribers on Aug. 21, while existing customers will see the change 30 days after their next service renewal date.

Apple’s original content includes programs like “The Morning Show,” and “Severance.” The company last hiked Apple TV+ prices in October 2023, when a monthly subscription rose from $6.99 to $9.99 in the U.S.

The move comes after both Netflix and NBCUniversal’s Peacock streaming service also raised their prices earlier this year. In January, Netflix boosted the cost of a standard plan with ads from $6.99 to $7.99 a month. Peacock in July raised its subscription rates by $3, increasing the cost of a Premium Plus plan to $16.99 per month.

Apple has announced a price increase for its Apple TV+ streaming service, raising the monthly subscription fee for U.S. customers from $9.99 to $12.99. This adjustment will take effect for new subscribers on August 21, while existing customers will experience the change 30 days after their next renewal date. The annual subscription cost will remain unchanged at $99.99.

This price hike is part of a broader trend in the streaming industry, as both Netflix and NBCUniversal’s Peacock have also increased their subscription rates this year. Earlier in January, Netflix raised the price of its standard plan with ads from $6.99 to $7.99 a month. Subsequently, in July, Peacock increased its Premium Plus plan by $3, bringing the monthly cost to $16.99.

The changes coincide with a growing competitive landscape in the streaming market, where companies are investing heavily in original content. Apple’s lineup includes popular titles like “The Morning Show” and “Severance,” which contribute to the platform’s appeal. This strategic decision reflects the ongoing challenge streaming services face in balancing content creation costs with subscriber retention and growth.

With the influx of new subscribers and changing pricing structures, industry analysts are closely monitoring how these adjustments will impact viewership and subscriber loyalty in an increasingly crowded marketplace.