Why the hikes? Everything is getting more and more expensive, and that includes streaming.
- The main subscription services com Disney+ and Hulu have been raising their prices frequently lately.
- An Apple spokesman said Music’s increase was the result of higher licensing fees and payments to performers. Another factor is that Apple TV+ now offers a more robust offering than when it debuted with a limited content library.
- Yet this comes when 61% of consumers believe they are paying too much for streaming servicesaccording to Fandom’s April data, and prices have only gone up since then.
- While Apple increasingly relies on subscriptions for revenue, it is also reported considering TV+ ads.
Our take: With these hikes, Apple is proving just how much its brand value is worth to consumers. It’s entirely possible that consumers will be willing to pay Apple an extra dollar or two, even if it means canceling, say, their subscriptions to Peacock or Discovery+.