Apple raises the prices of its services as media executives double the price increases

Apple (AAPL) joins its streaming competitors in raising prices.

On Monday, the tech giant announced price increases in its various services, including Apple TV +, Apple Music, and Apple One Bundle. This is the first time Apple has raised subscription prices for such offerings in the US, and international markets will see similar price increases.

In a statement to Yahoo Finance, an Apple spokesperson confirmed the price increase, stating, “Subscription prices for Apple Music, Apple TV + and Apple One will increase starting today.”

Apple CEO Tim Cook talks about Apple Music and other services at an Apple event on the campus of Apple’s headquarters in Cupertino, California on September 7, 2022. (AP Photo / Jeff Chiu, File)

Apple Music will now cost $ 10.99 for an individual plan (a $ 1 increase), and the family plan will increase by $ 2 per month to $ 16.99. Pricing for the Spotify (SPOT) competitor currently starts at $ 9.99 per month.

Apple TV + will see a price increase from $ 2 to $ 6.99 per month, while the Apple One bundle, which includes subscriptions to Apple Music, Apple TV +, Apple Arcade, iCloud +, Apple News +, and Apple Fitness +, will raise prices by $ 2 per month for $ 16.95.

Apple noted that the move to Apple Music is due to increased licensing costs. As a result, artists and songwriters will earn more for streaming their music.

The stock, which fell more than 16% year to date, was trading relatively flat according to the news; however, the Warner Music Group (WMG) rose on the announcement, jumping more than 13% at one point on Monday.

Regarding Apple TV +, the company wrote: “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 hosting a wide selection of award-winning and widely acclaimed series, feature films, documentaries and entertainment for children and families of the most creative storytellers in the world “.

Winner of the best film

Winner of Best Movie “Coda” (Courtesy of: Apple TV +)

The move follows recent price hikes from competitors like Netflix (NFLX), which raised monthly prices in January, and Disney (DIS), which announced price hikes at its various streaming properties in August.

Most recently, YouTube (GOOGL) raised the price of its YouTube Premium Family plan by 28%, with a price increase in the US from $ 17.99 to $ 22.99. The YouTube Premium Individual Plan and Student Plan have maintained current pricing of $ 11.99 per month and $ 6.99 per month, respectively.

“Streaming prices will rise,” previously warned Bob Bakish, CEO of Paramount (PARA), at Yahoo Finance’s All Markets Summit (video above). He added that consumers are likely to absorb the cost increases as “streaming represents tremendous value in general for the consumer.”

Alexandra is a Senior Entertainment and Food Reporter at Yahoo Finance. Follow her on Twitter @ alliecanal8193 and email her to alexandra.canal@yahoofinance.com

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