Apple raised prices for its music and video streaming services on Monday. This is the latest example of streaming products getting more expensive in recent months.
Apple Music subscriptions for individuals have been increased from $9.99 to $10.99 per month, and family plans for up to five people have been increased from $14.99 to $16.99 per month.
The company announced Monday that the price of Apple TV+ will increase to $6.99 per month, a 40% increase from the previous $4.99.
Apple (AAPL) said in a statement to CNN Business that the change in Apple’s (AAPL) Music’s costs was “due to increased licensing costs, and as a result, artists and songwriters will not be able to stream their music.” This will allow you to earn more income.
The company also said that the streaming platform “launched at a very low price because we started with just a few shows and movies.” Since then, The company has expanded its offerings and won Best Picture award at this year’s Oscars for the movie “CODA.”
But the new price hike could be the latest test of how much consumers are willing to spend on streaming products at a time when rising inflation is pushing up costs for Americans across a wide range of services.
In August, Disney announced that it would increase the price of Disney+’s premium tier by $3 per month to $10.99. This is the biggest price increase since the streaming service launched almost three years ago. Hulu, which is majority-owned by Disney, raised its subscription prices earlier this month.
The company’s price hike also comes at a time when macroeconomic pressures hit the technology sector particularly hard, forcing companies to look for new ways to generate revenue. Apple, whose stock has fallen nearly 18% so far this year, has increasingly relied on revenue from subscription services to bolster its earnings in recent years amid slowing iPhone sales growth.
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