Apple raises prices for both Apple TV+ and Apple Music for the first time since the streaming services' launch. File photo by John Angelillo/UPI | License Photo
Oct. 24 (UPI) -- Access to Apple TV+ and Apple Music costs a bit more now that the company has raised its monthly and annual subscription prices for the first time.
Apple Inc. increased its streaming prices Monday, while also raising prices for its bundle Apple One, in a move that could give competitors an edge.
Apple raised the price of Apple Music by a dollar a month to $10.99 surpassing both Spotify and Amazon. Apple's annual music plan now costs $109, up from $99.
Apple TV+, which has less content than its competitors, will continue to cost less than Netflix or Discovery+ as prices climb to $6.99 from $4.99 a month, and to $69 up from $49 a year. The Apple One bundle for families jumps to $22.95 a month, up from $19.95.
In a statement, Apple blamed rising licensing fees for making Apple Music services more expensive, while calling its price adjustment for TV streaming a reflection of its growing library.
"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," Apple said 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 company said.
Apple TV+ is not the only streaming service raising prices. Disney+ announced it will increase prices by 38% later this year and introduce a cheaper, ad-supported tier. Netflix raised prices earlier this year with an ad-supported option, while Hulu and ESPN+ have also announced price hikes.
Apple shares rose 1.48% to 149.45 on Monday, but the stock overall is down 16% for the year. Since its launch, Apple streaming has generated increasing revenue from services, which now accounts for nearly a quarter of the company's sales. Apple is scheduled to give its latest quarterly results this week.