Why the hikes? Everything’s getting more expensive—and that includes streaming.
- Major subscription services like Disney+ and Hulu have been increasing their prices frequently lately.
- An Apple spokesperson said Music’s increase was a result of higher licensing fees and payments to performers. Another factor isApple TV+ now offers a more robust offering than when it debuted with a limited content library.
- Still, this comes as 61% of consumers believe they’re paying too much for streaming services, per April data from Fandom—and prices have only risen since then.
- Although Apple is increasingly relying on subscriptions for revenue, it is also reportedly considering ads for TV+.
Our take: With these hikes, Apple is testing how much its brand equity is worth to consumers. It’s entirely possible that consumers are willing to pay one or two dollars more to Apple even if it means canceling, say, their Peacock or Discovery+ subscriptions.