Connect with us

Business

Apple Ups the Cost of its TV and Music Services

Published

on

Apple recently increased the prices of its monthly and yearly TV and music subscription packages. They increased the cost of Apple One bundles as well.

An individual Apple Music subscription costs $9.99 before the rate hike. But because of the new rule, the membership now costs $10.99, an increase of $1. Spotify, Apple’s main rival in the music streaming space, offers its service for $9.99 per month.

A monthly subscription to Apple TV+ cost $4.99 before the firm implemented the increase. However, individuals must now pay a monthly fee of $6.99 – plus a two-dollar increase. Apple claims that management reacted to recent price increases enacted by other market competitors. For instance, the starting price for Disney’s streaming service is $7.99 a month, while the industry leader Netflix starts at $9.99. The latter is working on a less expensive, ad-inclusive subscription that will only cost $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 cost of an Apple One yearly membership has increased by $2, from $14.95 to $16.95. The program also gives customers access to more storage and arcade games.

Read Also: Ukrainian Youth Help War-Stricken Communities in a Fun Way

Increases for Apple and other companies

Market analysts anticipate an increase in streaming services’ entry-level bundles. Many businesses are under pressure to raise their service costs due to rapid inflation, which many analysts predict could cause a worldwide recession. The need to increase or maintain customer demand is present at this time. Apple continues to be optimistic that the rise will enhance its income.

Recent financial reports indicate that the company’s sales increased quickly. For example, Apple reported revenues of its services at $16.9 billion for June. However, according to company management, a slower sales rate in the upcoming months may be caused by the dollar’s rise.

Read Also: Taylor Swift Releases New Album, “Midnights”

The reason behind the increase

Sales of smartphones and other devices help the company more than those of Apple TV+ and Apple Music. However, the business maintains a tight grip on these services to create more revenue streams.

“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.”

The current offers from streaming services are listed below:

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

Brandon Foster is a multimedia reporter. He covers a variety of topics.

Trending