If consumers are pouting, record companies are rubbing their hands. The price hike announced last week by Apple for its Apple Music streaming service has been applauded by Universal Music Group.
Since its launch in 2015, Apple Music has never increased the price of its premium subscription, which is still set at €9.99 per month. That changed last week, when Apple announced a price increase: +1 € for the individual offer which therefore goes to €10.99, +2 € for the family offer (16.99 €). In the process, the manufacturer also increased the price of Apple TV + (+ € 2 to € 6.99) and the Apple One service package.
Very good news for the majors
Apple justifies the increase in the subscription to Apple Music by the cost of higher licenses, and by the desire to better remunerate singers and composers. This increase has not gone unnoticed, neither by customers who will pay more for their music, nor by record companies. An executive of Universal Music Group (UMG) welcomed this, while recalling that it was Apple Music that chose its prices independently.
” I think Apple’s statement announcing the price change speaks for itself. explained Michael Nash, Vice President of Digital Strategy at UMG. ” [Apple] strongly believes in the value of music and by making these price changes, artists and composers will earn more from streaming their music “. For Nash, the value proposition of streaming services is “ extremely convincing even after this price increase.
He also said he was encouraged by the results of Spotify, which announced that it reached 195 million paying subscribers in the third quarter. ” This is a good sign for the industry “. The leader also said that the streaming market was stable. Rumors suggested that the majors’ market share in this segment was falling.