Apple Music, TV+, and One are now more expensive
What's the story
Streaming services have been getting pricier in the last few months. Now, Apple has joined the list of companies that have increased the costs of their services.
The Cupertino-based tech giant has hiked the prices of Apple Music, Apple TV+, and the all-encompassing Apple One in the US.
This is the first time the company has raised the prices of these services.
Context
Why does this story matter?
In recent years, Apple has been putting more emphasis on generating revenue from services. Its streaming push is part of that.
The company had managed to keep the introductory price of Music since 2015 and TV+ since 2019. Therefore, this cost increase is sort of a surprise.
The question is, will customers spend the increased amount amid growing inflation and other economic hardships?
Music
Apple Music's price is raised due to increased licensing cost
Apple Music for individuals is now priced at $10.99 compared to $9.99 before. The annual plan sees a $10 increase to $109.
Apple Music for families now costs $16.99, a $2 increase. There is no increase in the price of the voice plan.
The price hike in Apple Music "is due to an increase in licensing costs," said the company.
Rivals
Music is now costlier than Spotify and Amazon
The increased price of Apple Music makes it more expensive than Spotify and Amazon. After the news came out, Spotify's share price rose by 9.4% to $97.07.
Spotify and Amazon have managed to keep their prices intact despite other streaming services increasing theirs. This may pose a new challenge to Apple.
If those two don't increase their prices, Apple Music might lose its charm.
TV and One
Apple TV+ saw an annual price hike of $20
Apple TV+'s new monthly subscription charge is $6.99, a $2 increase from before. Annually, the price is hiked by $20 to $69.
Apple One, which includes Music, TV, Arcade, and iCloud will now cost $16.95/month after a $2 hike.
The family plan with more iCloud storage is now priced at $22.95, while the Premium plan now costs $32.95. Both saw a $3/month increase.
Competition
Apple TV+ is still cheaper than rival platforms
Talking about the price hike of TV+, Apple said that the service was introduced at a very low price because it had very few shows and movies in the beginning.
With a lot more on offer now, it makes sense to increase the price, the company said.
Notably, this hasn't resulted in a big increase in those who choose TV+ over other streaming services.