Apple Price Hikes Hit as Users Are Feeling Streaming Sub Pinch: EMarketer
Apple's price increases for its Music and TV+ streaming services and its One service bundle, which quietly took effect Monday, come in a year when 61% of consumers believe they’re paying too much for streaming services, said eMarketer Tuesday, citing…
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April Fandom data. Prices “have only risen since then,” said eMarketer analyst Jeremy Goldman, noting increases from Disney+ and Hulu. In addition to raising monthly fees $1 for the individual plan (now $10.99) and $2 for the family plan (now $16.99), Apple added $2 to the Apple TV+ rate (now $6.99 a month) and $2 to the Apple One bundle, which combines Arcade, iCloud+ storage, News+ and Fitness+ for $16.95 monthly. “With these hikes, Apple is testing how much its brand equity is worth to consumers,” Goldman said, saying, “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.” As of March, Spotify was the digital audio service used most by U.S. teens and adults, at 35%, eMarketer said. YouTube Music was second at 18%, followed by Pandora (15%), Apple Music (12%) and iHeartRadio (6%). In addition to subscription hikes, Apple is also reportedly considering an advertising model for TV+, Goldman said. Apple didn’t comment.