Apple TV, music bumps streaming prices as costs pile up for consumers
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Apple raises prices for Apple Music, Apple TV+ and Apple One
Apple is the latest company to raise the price of its streaming services, following suit behind the Disney+ bundle and Netflix.
Scott L. Hall, USA TODAY
Another day, another streaming service gets more expensive.
Apple increased the prices for its streaming services Apple Music and Apple TV+, as well as its bundle subscription bundle Apple One.
The price of a monthly individual subscription to Apple Music went up $1, while Apple TV+ and Apple One now cost $2 more per month.
And it’s not just Apple. Giants Hulu, Disney+ and Netflix have also increased prices this year, as streaming becomes more expensive for consumers.
The price hikes mean users must decide whether to pay more for the same service or let go of their subscriptions, said Michael D. Smith, a professor of information technology and marketing at Carnegie Mellon University.
“When prices change, all of a sudden consumers have an opportunity to say, ‘Does this still make sense at the new price versus what I paid last month?’” Smith said.
Details: Apple raises monthly subscription prices for Apple Music, Apple One and Apple TV+
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How much do streaming services cost?
Now, an individual subscription to Apple Music costs $10.99 a month and Apple TV+ costs $6.99 a month. An individual Apple One plan costs $16.95. Annual and family subscription plans also saw a bump.
Apple is the latest company to raise prices for streaming services. The price hikes come as platforms have to spend more to produce content, Smith said.
The Walt Disney Company in August announced it was bumping prices for Disney+, Hulu and ESPN+.
Starting in December, Disney+ will increase $3 from $7.99 a month to $10.99 a month, and will launch a basic plan with ads at $7.99 monthly.
Hulu’s prices also jumped this month. The price for the ad-free premium plan rose to $14.99, while the ad-supported option increased from $6.99 to $7.99.
ESPN+ bumped to $9.99 in August.
Streaming behemoth Netflix earlier this year raised prices of its plans, which start at $9.99. Next month, the platform will launch a version with commercials for $6.99.
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Will music services like Spotify bump prices?
Apple said it raised prices for its music service due to an increase in licensing costs, meaning artists and songwriters will earn more when their work is streamed.
Smith said the move may motivate competitors like Spotify to follow suit. The price of a Spotify premium subscription has stayed at $9.99 for more than a decade.
Spotify CEO Daniel Ek suggested raising subscription prices for U.S.-based users during the company’s earnings conference call Tuesday.
“It (U.S. price increases) is one of the things that we would like to do, and this is a conversation we will have in light of these recent developments with our label partners,” Ek said during the earnings call.