Apple raises Music, TV services prices worldwide
The company says the price hikes have been mandated by the need to pay higher artist royalties for music streaming, but it’s hard to ignore recent hikes in energy prices and speculate if this could also be behind the increase.
Why prices are rising
Explaining the increase, an Apple spokesperson said:
“The subscription prices for Apple Music, Apple TV+, and Apple One will increase beginning today. The change to Apple Music is due to an increase in licensing costs, and in turn, artists and songwriters will earn more for the streaming of their music. We also continue to add innovative features that make Apple Music the world’s best listening experience. We introduced Apple TV+ at a very low price because we started with just a few shows and movies. Three years later, Apple TV+ is home to an extensive selection of award-winning and broadly acclaimed series, feature films, documentaries, and kids and family entertainment from the world’s most creative storytellers.”
What this increase may mean to artists
MusicAlly estimates the increase will equate to a heavily estimated income per million subscribers. A $1 price rise means $435.4k of extra revenue for labels, and $66.3k of extra royalties for artists.
It also seems quite plausible to expect other streaming services to follow suit, now Apple has broken the $10 barrier.
[Also read: What is the Apple One services bundle?]
What analysts say
Nick Baker, TV and streaming expert at Uswitch.com, told us “As the cheapest of the mainstream streaming services, AppleTV+’s 40% price hike will be a big blow to its UK customers.
“Apple’s decision to increase monthly fees from £4.99 to £6.99 a month also seems to be swimming against the tide, at a time when rivals Netflix and Disney Plus are introducing new, lower-cost subscription tiers supported by advertising.
“Above all, this rise will be a big test of customer loyalty. AppleTV+ has fewer movies than Netflix, whose Basic With Ads package launches next Thursday at £4.99 a month. It also relies solely on original shows like Ted Lasso and The Morning Show, while the likes of Disney Plus and Amazon Prime Video can both draw heavily on large back catalogues.
“Yet unlike Netflix, Apple can use its streaming service as part of a wider strategy, offering free trials with sales of iPhones and other devices. This could include offering customers discounted bundle deals, giving them multiple Apple subscriptions in the same package. A fall in AppleTV+ subscriber numbers will not immediately send the share price into a tailspin or give Tim Cook sleepless nights.
“Remember that if you feel you aren’t getting value for money from your streaming subscription, you can cancel penalty-free whenever you want.”
What are the new Apple Music, TV+ and Apple One prices?
The cost of Apple Music has increased as follows (UK prices the same, eg. £10.99 for individual plan.)
- Individual: $10.99 per month (from $9.99)
- Family: $16.99 per month (from $14.99)
- Individual Annual: $109 per year (from $99)
The cost of Apple TV has increased as follows
- Monthly: $6.99 per month (from $4.99). £6.99 UK.
- Annual: $69 per year (from $49.99)
US Apple One prices
- Individual: $16.95/month: Includes Music, TV, Arcade and 50GB iCloud
- Family: $22.95/month: Includes Music, TV, Arcade and 200GB iCloud. Can be shared with up to five people.
- Premier: $32.95/month: Includes Music, TV, News, Fitness, Arcade and 2TB iCloud. Can be shared with up to five others.
UK Apple One prices
- Individual: £16.96/month: Includes Music, TV, Arcade and 50GB iCloud
- Family: £22.95/month: Includes Music, TV, Arcade and 200GB iCloud. Can be shared with up to five people.
- Premier: £32.95/month: Includes Music, TV, News, Fitness, Arcade and 2TB iCloud. Can be shared with up to five others.
Prices are set to increase in all markets.
Existing users should be told before the hike hits them.
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