Apple raises subscription prices for TV and music

Apple says it is raising the prices of TV+ subscriptions, music and bundled services for the first time since their launch, becoming the latest consumer technology group to increase fees for customers.

The iPhone maker increased the price of Apple Music by $1 to $10.99 a month, citing “increased licensing costs” and said artists and songwriters would make more money as a result. Prices for the family plan increased by $2 to $16.99 per month.

an apple also raised the price of its rival Netflix, TV+, by $1 to $5.99 a month, while the cost of a subscription to Apple One — full access to music, TV, arcade, cloud, news and fitness offerings — rose by $2 dollars for individuals up to $14.95 per month and $3 for a family plan up to $22.95 per month.

Apple’s move comes at a time when inflation has soared, putting more pressure on consumers. In February, Amazon raised the price of a Prime Minister of the United States subscriptions by $20 to $139, citing higher wages and transportation costs, and the Music Unlimited plan rose $1 to $8.99 a month in April.

Earlier this year, Netflix raised its prices in the US, a move the company said caused some customers to cancel their subscriptions. Disney-Plus announced this raise the price ad-free services from $7.99 to $10.99 per month, and Hulu also recently raised prices, with the ad-supported tier increasing by $1-$8 per month and the ad-free plan by $2-$15 per month.

Apple’s move will put additional pressure on Spotify to follow suit. Major music companies have pushed Spotify for years to raise prices, arguing that Netflix has repeatedly raised subscription fees, and that Spotify has kept its flagship subscription at $10 a month since it launched in the US a decade ago.

Spotify has maintained a significant lead over Apple in paid music streaming. Apple Music has not reported its subscriber numbers for years, but Midia analysts estimated in January that it had about 15 percent of the market, while Spotify had 31 percent.

Services, Apple’s division for App Store purchases, cloud storage, warranties and consumer subscriptions, has been Apple’s fastest-growing division in recent years. In 2021, that division’s revenue grew 27 percent year-over-year to $68 billion — more than the Mac and iPad divisions combined — with an operating margin above 70 percent.

The price hike comes just weeks after Apple raised the price of in-app purchases in many countries, including the eurozone. The Coalition for App Fairness called the move “a unilateral money grab made possible by its unchecked power.”

Spotify is scheduled to report earnings on Tuesday, while Apple is scheduled to report earnings on Thursday.