Apple raises Apple Music and Apple One prices: licensing costs bite

What happened?

Apple has raised prices for its Apple Music and Apple One subscriptions in several markets, including the United States, United Kingdom, and Australia. According to Music Business Worldwide, the company attributes the increase to rising licensing costs. It's the first hike since October 2022, when Apple last raised prices amid a similar inflationary environment.

Specifically, the Apple Music Individual plan goes from $10.99 to $11.99 per month in the US (up $1), the Family plan rises from $16.99 to $19.99 (up $3), and the Student plan goes from $5.99 to $6.99. In the UK, Individual rises from £10.99 to £11.99, Family from £16.99 to £19.99, and Student remains at £5.99. In Australia, increases range from A$2 to A$4 depending on the plan: Individual goes from A$12.99 to A$14.99, Family from A$19.99 to A$23.99, and Student from A$6.99 to A$7.99.

As for Apple One, the Individual plan stays at $19.95, but Family rises from $25.95 to $27.95 and Premier from $37.95 to $39.95 (both up $2). These changes are already in effect in the mentioned markets, and are expected to roll out to other countries in the coming weeks, based on the pattern of previous increases.

Why is this important?

This increase is not an isolated event. It comes amid rising music licensing costs due to pressure from record labels and artists for better payouts. In 2024, the global recorded music industry reached record revenues of $28.6 billion, according to the IFPI, and streaming platforms like Apple Music face higher royalties after renegotiating contracts with labels such as Universal Music Group and Sony Music. Additionally, inflation and rising operational costs (like storage and bandwidth) are impacting all streaming platforms.

Apple Music does not have a free ad-supported tier like Spotify, so users who want to keep their music library have no choice but to accept the new price or cancel. This has sparked criticism on social media about the loss of financial control when companies can unilaterally raise prices. One Reddit user commented: "It's not just about the cost, it's about the loss of control over your finances. Companies can raise prices whenever they want." Moreover, this increase comes at a time when consumers are more price-sensitive due to persistent inflation in goods and services.

Consequences and context

This move could pressure other platforms like Spotify or Amazon Music to also raise their prices. In fact, Spotify has already increased its rates in several markets in recent months: in July 2024, Spotify raised its Premium Individual plan from $10.99 to $11.99 in the US, and its Family plan from $16.99 to $19.99. Amazon Music also raised its prices in 2023. The music streaming industry faces a difficult balance between profitability and user retention. According to a MIDiA Research analysis, the music subscription market is maturing, and price increases are necessary for platforms to be sustainable in the long term, but the risk of cancellations is real: in the past, similar increases led to a temporary loss of 2-3% of subscribers at Spotify.

For users, the recommendation is to evaluate whether they actually use all the services included in Apple One (music, TV+, iCloud storage, etc.) and consider alternatives like Spotify, Tidal, or Amazon Music. It's also worth checking for discounts on annual plans or offers from mobile carriers. For example, Apple Music offers a cheaper annual plan ($109 per year in the US, which equates to $9.08 per month, compared to $11.99 monthly). Additionally, some carriers like Verizon and AT&T include Apple Music subscriptions in their premium plans.

What should readers know?

• The new prices are already in effect in the US, UK, and Australia. They are expected to roll out to other countries soon, following the pattern of the October 2022 increase that expanded globally within weeks.
• Apple One Individual has not increased, but Family and Premier plans have. This could incentivize individual users to keep their current plan, but families and those seeking the full bundle will pay more.
• No changes to Apple TV+ or iCloud+ prices for now. Apple TV+ remains at $9.99 per month, and iCloud+ at $0.99 (50 GB), $2.99 (200 GB), and $9.99 (2 TB).
• Users can cancel at any time, but will lose access to downloaded music if they don't pay. Apple allows song downloads for offline listening, but these are removed upon cancellation.
• Comparison with other services: Spotify Premium costs $11.99 per month (individual), Amazon Music Unlimited $10.99 (for Prime members) or $10.99 (non-Prime), and Tidal HiFi $10.99. Apple Music remains competitive in price, but the increase brings it in line with Spotify.

As one Reddit user notes: 'It's not just about the cost, it's about the loss of control over your finances. Companies can raise prices whenever they want.'

In summary, Apple follows the industry trend of raising prices to maintain margins. For consumers, it's a reminder that subscription services are not immune to inflation and that loyalty comes at a growing cost. The decision to keep or cancel the subscription will depend on perceived value and the availability of alternatives. In the long term, these increases could accelerate market consolidation, where only services with higher added value (like ecosystem integration or exclusive content) will retain users.