Apple raises price of Apple TV+, music and bundle, citing increased licensing costs and broader video offering

Apple raises price of Apple TV+, music and bundle, citing increased licensing costs and broader video offering

Apple is instituting significant price increases starting today for the Apple TV+ streaming service as well as Apple Music and the Apple One bundle, citing higher licensing and content costs.

Apple TV+’s monthly price will drop from $4.99 to $6.99, while the annual plan will drop from $49.99 to $69.99. Both are 40% peaks, although this is the first time the streaming service has increased since its launch in November 2019.

Apple Music jumps a dollar for individuals, to $10.99 per month, with the family plan jumping two dollars to $16.99 per month. Apple One, which bundles video and music streaming with cloud services, video games and other options, costs $16.95 per month compared to $14.95 for individuals. Families will pay three dollars more, or $22.95 per month.

“The move to Apple Music is due to increased licensing costs, and in turn, artists and songwriters will earn more for streaming their music,” an Apple representative explained in a statement to Deadline. . “We also continue to add innovative features that make Apple Music the best listening experience in the world.”

As for Apple TV+, according to the release, it was launched “at a very low price because we started with just a few shows and movies. Three years later, Apple TV+ offers a wide selection of award-winning and widely acclaimed series, feature films, documentaries and children’s and family entertainment from the world’s most creative storytellers.

The video streaming economy is handled differently at tech giants like Apple compared to entertainment companies like Disney, NBCUniversal and Warner Bros. Discovery or even a pure outfit like Netflix. Because Apple is primarily interested in continuing to push its devices as well as its overall services, the return on investment in expensive film and TV projects is less than at other companies.

Even after the 40% jump, Apple TV+ will still be at the lower end of the subscription streaming range, although the premium tier of Peacock and the ad-supported version of Paramount+ are now cheaper. Netflix’s soon-to-be-launched subscription plan with ads will match Apple TV+ at $6.99 per month.

Since Apple TV+ is one of many subsets of the overall services division, the company has focused on overall performance and has never disclosed subscriber numbers or services. audience measurement for video streaming. As Apple strikes a deal for Nielsen to measure its US audience, winning Emmy-winning comedy Ted Lasso a spot on the weekly charts, similar milestones like the Oscar win for CODA weren’t accompanied by any viewing revelations.

Toni Sacconaghi, an analyst at Bernstein Research, estimated there were between 20 and 40 million Apple TV+ subscribers, generating between $1 billion and $2 billion in revenue. Other analysts pointed to the company’s huge global installed base of nearly a billion iPhones and said that while even a small fraction of those users opted for Apple TV+ (which is free for the first year with Apple TV+). device purchase), the service could easily attract tens of millions of paying customers in its first few years.

Unlike every other top streamer, Apple has so far resisted adding an ad tier for Apple TV+, despite showing an increased appetite for live sports, signing rights with Major League Baseball and Major League Soccer and continued the NFL’s Sunday Ticket package. . Sports, as Prime Video, ESPN+, Peacock and others have shown, is a powerful draw for advertisers in subscription streaming.

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