Key Takeaways:
- Apple Music Individual rises $1 to $11.99, Family up $3 to $19.99
- Apple One Family and Premier each increase $2 to $27.95 and $39.95
- Price hikes boost Services ARPU as licensing costs pressure margins
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Apple hikes Music and One prices by up to $3 as costs rise
Apple raised Apple Music and Apple One subscription prices globally on July 17, with the Family plan climbing $3 to $19.99, as rising licensing costs push the company to extract more revenue from its more than 2.2 billion active device install base.
"As a result of rising licensing costs, Apple Music is increasing its subscription price beginning today," the company said in a statement, marking its first price hike for the service since October 2022.
Apple Music Individual rose $1 to $11.99 per month, while the Student plan increased $1 to $6.99. Apple One Individual held at $19.95, but the Family tier rose $2 to $27.95 and Premier climbed $2 to $39.95. Apple TV+ costs $12.99 following an August 2025 increase, and Apple Arcade remains at $6.99.
The increases strengthen Apple's Services segment, which generated $26.3 billion in the March quarter and carries gross margins above 70%, compared with roughly 36% for hardware. With licensing costs rising across the music industry, the price hikes could add an estimated $1.5 billion to annual Services revenue, according to analysts.
Apple One bundles still offer savings for subscribers who use multiple services. The Individual tier, at $19.95, includes Apple Music, Apple TV+, Apple Arcade and 50GB of iCloud+ — services that would cost $32.96 separately, a $13.01 monthly saving. The Family plan, at $27.95, saves up to $15.01 versus $42.96 purchased individually. The Premier tier, at $39.95, adds Apple Fitness+ and Apple News+ with 2TB of iCloud+ storage, saving $32.99 monthly versus $72.94 for separate subscriptions.
The value depends on usage patterns. Subscribers who do not use Apple Arcade or Apple News+ may save more by buying services individually, especially with annual Apple TV+ and Fitness+ subscriptions offering discounts. Apple's installed base of more than 2.2 billion active devices provides a recurring revenue stream that investors value at a premium to the company's hardware business.
Spotify, Apple's main rival in music streaming, charges $11.99 for its Individual plan in the US, matching Apple's new price. Amazon Music Unlimited costs $10.99 for Prime members, while YouTube Music Premium is $10.99. Apple shares, trading at roughly 32x forward earnings, have gained 18% this year as the market prices in Services growth.
This article is for informational purposes only and does not constitute investment advice.
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