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Apple Has Quietly Increased The Prices Of Apple Music And Apple TV Plus

Apple cited higher music licensing costs and Apple TV Plus’ larger library as reasons for the price increases, but they will come at a time when inflation is already putting a strain on wallets. Apple increased the prices of its Apple Music and Apple TV Plus subscription services, as well as its Apple One package, which bundles both of those services with a few others, marking the company’s first significant price increases in the United States in years. Beginning on Monday, new Apple Music subscribers will pay $1 more for individual plans, at $11, and $2 more for family plans, at $17. Meanwhile, Apple TV Plus has increased by $2 to $7 per month. Meanwhile, Apple’s bundle service, Apple One, will cost $16.95 per month for an individual, a $2 increase. The Apple One family plan will cost $22.95 per month, and the premier plan will cost $32.95 – a $3 increase for both. Individual and family plans for Apple One include Apple Music, Apple TV Plus, Apple Arcade cloud gaming, and iCloud remote storage; premier includes those four plus Apple Fitness Plus workouts and Apple News Plus, which unlocks multiple subscription newspapers, magazines, and other news outlets.) Existing members can also expect their bills to rise soon. People who already have Apple Music, Apple TV Plus, or Apple One subscriptions will be notified of the price increases 30 days before they are billed at the higher rate. For the majority of people on monthly plans, this means that your membership will be charged once more at the previous price before it increases on your next bill. Apple Music’s price increase was attributed to increased licensing costs and payouts to artists and songwriters, according to an Apple spokesperson. Meanwhile, she noted that Apple TV Plus began with “just a few shows and movies” and has since expanded to include “award-winning and widely acclaimed series, feature films, documentaries, and kids and family entertainment from the world’s most creative storytellers.” In comparison to competitors, Spotify’s individual premium plan costs $10 per month, $1 less than Apple Music. Even with the price increase to $7, Apple TV Plus remains one of the less expensive subscription video services: Netflix’s most popular plan is $15.50, for example, and Disney Plus will begin charging $8 per month for an ad-supported subscription and $11 per month for an ad-free membership in December. The move is the latest in a string of price increases among top subscription services, as global economic instability has resulted in high inflation. Netflix, Spotify, Disney, and even Google-owned YouTube have raised at least some of their subscription rates in recent years, though they haven’t all blamed the global economy, as Apple has. Some price increases, such as those seen with Spotify and YouTube, have targeted family plans, in which multiple people benefit from access to the service. Meanwhile, Netflix, Disney Plus, and Apple have broadened the scope of their price increases. It’s difficult to predict whether people will change their habits in response to price changes. When a service raises its prices, it usually has to deal with churn or the rate of cancellations. Netflix, for its part, has previously described churn following a price increase as manageable, referring to it as an “adjustment period” with “slightly higher churn.” However, soon after Netflix raised its prices by up to $2 in January, an unprecedented number of people abandoned the service. The company reported growth again earlier this month, but not before promising to change its business by cutting costs and offering a new, lower-cost ad-supported tier. In more than three years, Apple has not updated its public Music membership figures. Apple announced in June 2019 that its service had 60 million subscribers. Meanwhile, Spotify reported in July that it has 188 million paying subscribers and is expected to surpass 450 million total listeners last month. According to music industry researcher MIDiA, Apple controls approximately 15% of the global subscription music market; Spotify controls more than double that. Apple has never disclosed the number of subscribers for Apple TV Plus, but it’s widely assumed to be a fraction of Netflix’s, which had 223 million paying customers worldwide as of September. For well over a year after Apple TV Plus debuted in November 2019, the majority of its viewers were able to watch it for free thanks to a free trial offer that Apple kept extending. Since last year, however, Apple has limited its free trials and begun charging many of the freeloading subscribers.

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