Apple finally told the world how much its upcoming video streaming service, Apple TV+, will cost, and the aggressive price prompted a stock sell-off for rivals Disney and Netflix.
Apple TV+, which is officially launching Nov. 1, will carry a price tag of $4.99 per month, significantly less than the $6.99 per month Disney+ will charge when it arrives later this year. It’s also far less than the $12.99 per month Netflix charges for its most popular plan.
Apple also plans to give away a free year of Apple TV+ to customers who purchase new iPhones, iPads or Apple TV devices. The service will also beat Disney+ to market by nearly two weeks.
Whatever the reason for concern, both Disney's and Netflix’s stock values experienced sharp declines in the hours directly following Apple’s announcement.
Roku’s stock also plummeted after the Apple TV+ announcement, but since Apple’s TV app is eventually arriving on Roku devices it’s more difficult to determine what has investors slightly spooked.
Apple also announced pricing for its upcoming cloud gaming service. Apple Arcade will cost $4.99 per month when it launches on Sept. 19.
Paolo Pescatore, an analyst at PP Insight, said Apple’s event on Tuesday further highlighted the company’s growing commitment to making service revenue a bigger piece of its overall business.
“On services, this is a huge statement of intent,” said Pescatore. “Immediate global rollout at a punchy price point outlines Apple’s commitment to compete head on with rivals.”
Apple TV+ will have a relatively limited lineup of original series when it launches, but the company plans to add more content on a monthly basis. Originals available at launch include previously announced series “The Morning Show” and “Dickinson.” Apple didn’t talk about any licensed titles that it will add to its service, unlike competitors, including Disney+, that will launch with lots of library content. At launch, most Apple TV+ series will premiere with three episodes, with one new episode to roll out each week, while full seasons of some series will be available all at once.
Apple TV+ at launch will be available in more than 100 countries.