This is the first time that Apple raised the price of its subscription streaming service.
Apple TV Plus Getting a Price Increase
Apple is joining Netflix, Hulu, and Disney in increasing the prices of their streaming services. The price increases affect Apple TV+, Apple Music, and Apple One bundle. The company states that the price hike accounts for the industry’s increasing licensing costs.
This is also the first time that Apple TV gets a price hike after a low-price launch. The company has already grown its offerings since it debuted in 2019 with a small price of $4.99. It is one of the cheapest streaming services until the latest announcement.
Thus, if you have an Apple TV+ subscription, you can expect to pay $6.99 from $4.99. For Apple Music, there’s a dollar addition to the price from $9.99 to $10.99. Then, for Apple One, it’s now $16.95 from the previous $14.95.
The price bump doesn’t only affect individual packages. Apple states that there’s a price increase for family packages.
Apple said that the change is the result of licensing costs. With that in mind, singers and songwriters will earn more for streaming their music on this platform.
But that’s not the only reason for the price bump, Apple will also introduce innovative features to ensure that Apple Music remains the world’s best streaming platform that offers an amazing listening experience.
As mentioned, Apple isn’t the only streaming service that’s increasing its prices. Netflix announced a price hike in addition to an ad-supported plan that will be released on November 3.
Disney+ and Hulu are also raising their fees. The former will get an ad-based tier, as well, on December 8.
During a period of inflation, consumers are the ones carrying the burden by paying for increased subscription fees and rising operational costs.
The new price hikes could test how much consumers will spend on streaming products during this financial crisis. The price increase for Apple streaming services comes as economic pressures hit the tech sector. It pushes companies to find new ways to generate revenue.
Apple’s stock declines 18% this year. It is increasing its bet on revenue from subscription services to boost its bottom line. Its iPhone sales growth is also slow.
Are Customers Willing to Pay for the Price?
According to a study, 60% of US streaming subscribers have at least three video subscriptions. But this is a luxury that they may no longer afford at this point. According to a survey, two out of three adults would cut back on subscriptions just to save money.
To avoid these streaming services to lose a significant percentage of consumers, they must first ensure a huge library of content. Furthermore, they should also guarantee that their services are accessible on major TV devices.
Consumers may have the stomach for price increases. But they may have to cancel their other streaming subscription and choose just one service for entertainment. We’ll see how the price increase will affect subscriptions.