Apple raises Apple Music, One prices as licensing costs climb

Apple raised prices on Apple Music and some Apple One bundle plans, citing higher licensing costs.

The company last week increased the individual Apple Music plan by $1 to $11.99 a month. The student plan rose the same amount to $6.99. The family plan jumped $3 to $19.99.

Apple also lifted prices on two of the three Apple One tiers. The family plan, which bundles Music, TV, iCloud+, Arcade and Fitness+ for up to five people with 200 GB of storage, went up $2 to $27.95 a month. The Premier package, which adds News+ and 2 TB of storage for up to five people, rose $2 to $39.95. The individual plan, at $19.95, stayed flat.

Apple didn't announce the changes. They appeared on the company's website Friday. Apple told 9to5Mac that "as a result of rising licensing costs, Apple Music is increasing its subscription price beginning today."

The increases apply to U.S. customers and those in other countries.

The move follows price hikes on Apple's hardware. In late June, Apple raised prices on iPad and MacBook models, citing memory chip costs. The MacBook Air went up $200 to $1,299. The MacBook Pro with 1 TB of storage rose $300 to $1,999. The iPad Air with 128 GB jumped $150 to $749.

Apple said at the time it had "never seen a component price increase this much, this quickly" and had shielded customers from increases "so far."

Apple's subscription revenue has become a bigger part of its business as hardware sales slow. The company reported services revenue of $24.2 billion in its most recent quarter, up 14% from a year earlier. Music and cloud services are key pieces of that growth.

Higher prices could test how much subscribers are willing to pay for Apple's ecosystem, especially as competitors like Spotify and Amazon offer similar services at comparable or lower rates. Apple's services business carries higher margins than hardware, so even small price increases flow through to profit.

Apple shares trade near NVDA, though the company's valuation reflects its services growth story more than its hardware cycle. The stock is up roughly 12% this year, trailing the broader market.

The price increases also come as regulators in the U.S. and Europe scrutinize Apple's control over its App Store and services. The company faces a Department of Justice lawsuit and European Digital Markets Act compliance requirements that could reshape how it operates its services business.

For now, Apple is betting its users will absorb the higher costs. The company has one of the most loyal customer bases in consumer tech, with high switching costs tied to iCloud storage, purchased apps and family sharing. That stickiness gives Apple pricing power that most competitors lack.

Apple's next earnings report, expected in late October, will show whether the price increases are sticking or pushing subscribers to cheaper tiers or rival services.