Apple upped the monthly and annual prices for its TV and Music services. They also raised the price of Apple One bundles.
Before the hike, a monthly membership to Apple Music costs $9.99. However, with the new mandate, the membership now costs $10.99, a dollar more. Spotify, its main rival in music streaming, offers its basic service at $9.99 per month.
Meanwhile, an Apple TV+ user paid $4.99 per month before the price increase. However, individuals must now pay an additional $2 each month. According to Apple, the decision is in reaction to recent price increases implemented by other market competitors. For example, Disney’s streaming services begin at $7.99 per month, whereas market leader Netflix begins at $9.99 per month. On the other hand, the latter is working on a less-priced ad-inclusive subscription that will reportedly cost only $6.99 per month.
“We’re updating our prices so that we can continue to offer a wide variety of quality entertainment options,” said Netflix management.
The annual membership fee for Apple One has also increased by two dollars, from $14.95 to $16.95. Furthermore, the program provides extra storage and Arcade games to customers.
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Apple and others increasing offers
Market analysts anticipate an increase in the basic bundles of streaming services. In addition, rapid inflation, which many analysts forecast could lead to a worldwide recession, is putting pressure on many businesses to raise their service costs. This is in response to the need to maintain or expand customer demand. Meanwhile, Apple is convinced that the hike would contribute to increased revenue.
According to recent financial reports, the company’s revenues increased rapidly. Apple reported $16.9 billion in service revenues in its June sales report. However, its management stated that the strengthening of the currency might result in a slower sales rate in the coming months.
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The reason behind the hike
The company finds more profit from smartphone and device sales than from Apple TV+ and Apple Music subscriptions. However, the firm keeps a substantial hold on these services to generate more revenue.
“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,” said the company in a statement.
“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.”
Here are the current streaming site options:
Netflix
$6.99 − basic with ads
$9.99 − basic without ads
$15.49 − standard without ads
HBO Max
$9.99 − with ads
$14.99 − without ads
Hulu
$7.99 − with ads
$14.99 − without ads
Paramount+
$4.99 − with ads
$9.99 − without ads
Peacock
$4.99 − premium with ads
$9.99 − without ads
Disney+
$7.99 − with ads*
$10.99 − without ads*
*Available starting in December
Photo Credit: Michael Short
Source: CNBC
