Apple Music raises subscription cost, says artists "will earn more"
YouTube Premium’s price is also going up
Apple Music and YouTube Premium have raised their monthly subscription cost for users.
Apple Music now costs $10.99 a month for individuals in the US, a $1 increase, while a family plan for up to five people has gone up from $14.99 to $16.99 per month. An annual plan has increased from $99 to $109 per year.
In the UK, the Apple Music individual and family plans now cost £10.99 and £16.99 respectively, while in Europe they cost €10.99 and €16.99 respectively.
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Apple says the increased cost for users will also see an increase in earnings for artists and songwriters.
A statement sent to CNN from Apple says the price hike is “due to an increase in licensing costs, and in turn, artists and songwriters will earn more for the streaming of their music.”
YouTube Premium’s Family Plan, which allows use for up to five family members with the same address, has also been raised, increasing $5 to $22.99 per month.
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Macroeconomic pressures such as inflation and economic uncertainty caused by geopolitics is hitting the tech sector hard, with many companies seeking ways to boost revenues, including video streaming services such as Netflix introducing ad-supported subscriptions.
This is the first price rise Apple Music has enacted since launching in 2015. The company is also raising subscription costs for its Apple TV streaming service, which launched in 2019, for the first time.
Spotify, the market leader, is also reportedly considering a price hike, as reported by Music Business Worldwide.
“When our competitors are increasing their prices, that’s really good for us because, again, with our deep engagement that we have and the lowest churn of any competitor, we will likely fare better,” Spotify CEO Daniel Ek told analysts this week.
Ek also recently criticised anti-Semitic comments made by Kanye West, but said the rapper's music will remain on the platform, because his music “doesn’t violate our policy”.
Patrick Hinton is Mixmag's Editor & Digital Director, follow him on Twitter