Apple’s push into streaming in recent years is part of a broader effort to generate more revenue from services. That category now generates nearly a quarter of the company’s sales — almost $20 bill…
Apple Inc. increased prices for its music and TV+ services for the first time, citing rising licensing costs, a move that risks giving rivals an edge in a fiercely competitive streaming industry.
With its video plan, TV+, Apple will continue to offer a lower price than companies like Netflix Inc. or Warner Bros. Discovery Inc., but that service has been slow to build as big a following as rival platforms. The price of Apple TV+ will climb to $6.99 from $4.99, and the standard Apple One bundle increases $2 to $16.95.
The company said in a statement that the music price hike was due to “an increase in licensing costs” and that artists and songwriters will now earn more money. That came as good news for investors in Warner Music Group Corp., a top recording company, which sent the shares up as much as 15% on Monday.
Apple shares rose less than 1% to $148.56 on Monday. Though the stock is down 16% this year, that’s less of a rout than the broader indexes have suffered. The S&P 500 Index has fallen more than 20%.