Apple raises prices for Music and TV+ services for first time

The company said that more features would be added to the services

Apple Music's entry-level subscription price is now up at $10.99 from $9.99. Bloomberg

Apple, the world’s most valuable tech company, has raised the subscription price for its Music and TV+ streaming services for the first time to offset an increase in licensing costs.

The price rises came into effect on Monday, the company said.

The basic monthly individual subscription for Apple’s Music service has been increased to $10.99, up from $9.99 previously, while the monthly family rate has jumped to $16.99 from $14.99 and an annual subscription will now cost $109, up from $99.

TV+ subscribers will now pay a monthly subscription of $6.99, up from $4.99, while the annual rate has increased to $69 from $49.99.

Apple's decision to raise its subscription rates follows similar moves by major technology companies, which continue to fight soaring operating costs primarily due to a stronger dollar and stubbornly high inflation.

The company also raised entry-level prices for its Apple One bundle — which includes TV+, Music, iCloud, Fitness+ and gaming service Arcade — to $16.95 from $14.95.

A monthly family subscription to Apple One now costs $22.95, up from $19.95, while the premier option is now $32.95 from $29.95.

More features will be added to the services amid the price increases, a spokesperson for the Cupertino, California-based company said in a statement.

The growth of TV+, which is challenging global streaming platform Netflix, started at "a very low price because we started with just a few shows and movies", they added.

"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," they said.

The price increases are expected to boost Apple's revenue. Music, TV+ and One are part of its services portfolio, which contributed almost $17 billion in revenue in the company's fiscal second quarter.

Apple, however, has warned that revenues may be slower in the third quarter due to the rising strength of the US dollar. The company is scheduled to report its earnings in the three months ended September on Thursday.

Netflix, the world's largest streaming service, increased its prices in January, with its basic plan bumped up to $9.99 from $8.99.

However, it is also rolling out an ad-supported plan at $6.99 a month, it’s lowest rate.

Meanwhile the price of Walt Disney's flagship Disney+ service will jump more than a third to $11 later in 2022, but the company will retain its original $8 rate, also through an ad-supported tier.

Separately on Monday, Apple updated its rules on cryptocurrencies and non-fungible tokens (NFTs), saying these digital assets could not be used for payments on its App Store.

"Apps may not use their own mechanisms to unlock content or functionality, such as licence keys, augmented reality markers, QR codes, cryptocurrencies and cryptocurrency wallets," the company said in a post on its developer website.

Apps may use in-app purchases to sell services related to NFTs, such as minting, listing and transferring, "provided that NFT ownership does not unlock features or functionality within the app", it added.

"Apps may allow users to browse NFT collections owned by others, provided that the apps may not include buttons, external links, or other calls to action that direct customers to purchasing mechanisms other than in-app purchase.”

The updates were made after the roll-out of iOS 16.1, which has a number of features that adds more functionality and seamless operability for Apple's flagship iPhone.