Apple Inc AAPL raised the prices of both its monthly and annual subscription-based content services in the United States.
What Happened: The price hike means Apple TV+ and Apple Music will now cost more and so will the bundled services in the Apple One services, reported CNBC.
Apple Music subscribers will now pay $10.99 a month, compared with the $9.99 they were paying earlier.
TV+ subscription is now priced at $6.99 per month while earlier it cost $4.99 per month.
Apple One, with Arcade gaming service, now costs $16.95 instead of $14.95. The bundle also offers cloud storage.
“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,” said Apple in a statement, according to CNBC.
See Also: How To Buy Apple (AAPL) Shares
Why It Matters: Apple Music now costs more than the rival offering from Spotify Technology S.A. SPOT.
While Apple’s subscription video-on-demand competitors have raised prices as well recently, TV+ is still priced lower than both Disney+ and Netflix Inc’s NFLX services, which cost $7.99 and $9.99 a month, respectively. Netflix’s ad-supported version would be priced similarly to Apple TV+.
Meanwhile, the Tim Cook-led company announced new Apple TV 4K hardware in two configurations last week with a starting price of $129.
Apple watcher Mark Gurman hailed the price drop and segmentation of the device.
Read Next: Apple Is Selling This $330 Gadget To Let You Unlock Your Front Door With Just iPhone Tap
© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.