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Apple (AAPL, $152.34) has increased prices for its music and TV+ services for the first time, citing rising licensing costs, a move that risks giving rivals an edge in a fiercely competitive streaming industry. The publisher has grown its TV and movie offerings since its 2019 debut at $4.99, remaining one of the cheapest streaming services until now – with prices now being bumped to $6.99.
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The company increased the price of Apple Music to $10.99 a month from $9.99 for individuals, effective immediately, making it more expensive than services from Spotify Technology (SPOT, $97.05) and Amazon (AMZN, $120.60). Spotify surged as much as 9.4% to $97.07 in response to the news, its biggest intraday rally in almost three months.
Why it matters
Across the world, consumers continue to grapple with rising subscription prices during a period of inflation and rising operational costs. For options like Apple TV+, its library remains among the smaller options compared to other streaming giants like Hulu and Netflix. Apple explained that the change to Apple Music is due to an increase in licensing costs, and in turn, artists and songwriters will earn more for streaming their music.
