‘Digital Prices’ Rise Again... Apple TV Plus and Music Subscription Fees Increase by 10~40%

In-App Purchase Prices Raised by 25% in Just 2 Weeks... Apple TV+ $6.99, Apple Music $10.99

[Image source=Pixabay]

[Asia Economy Reporter Yoon Seul-gi] Apple announced that following the recent increase in App Store in-app purchase prices earlier this month, it will raise the subscription fees for its streaming services tv+ and Apple Music in the United States. The price hikes are expected to be similarly applied to other countries soon, which will likely increase the burden on domestic users as well.

On the 24th (local time), Apple Music's monthly fee rose by about 10%, from $9.99 to $10.99. As a result, the subscription fee is now higher than that of competitor Spotify, which starts at $9.99.

The Apple TV+ subscription fee increased by about 40%, from $4.99 to $6.99. Although still lower than competitors Disney+ ($7.99/month) and Netflix ($9.99), it matches Netflix's upcoming ad-supported low-cost plan ($6.99) launching next month. Apple also raised the price of Apple One, which bundles services including the game service Arcade, from $14.95 to $16.95 per month, an increase of about 13%.

Regarding the price increase, Apple explained, "The increase in music fees is due to rising licensing costs, which will ultimately allow artists and composers to earn more money from their music streaming."

Citizens visiting the Apple Store Jamsil, which opened last September in Lotte World Mall, Songpa-gu, Seoul, are looking at Apple products. Photo by Yonhap News

Apple's recent price hikes come about two weeks after it raised App Store prices and in-app purchase fees by approximately 25% in South Korea and Europe. Since October, Apple has increased the minimum app price tier in South Korea from 1,200 won to 1,500 won, citing exchange rate fluctuations. Currently, Apple classifies in-app purchase prices into 87 tiers.

In response, domestic companies have adjusted their content usage fees upward. For example, KakaoTalk emoticon prices jumped from 2,500 won to 3,000 won, and music provider Melon raised the price of its iOS (iPhone operating system) app's "limited-time streaming pass" by 1,000 won.

Apple's price increases have fueled inflation in digital content prices, increasing the burden on consumers. According to the office of Rep. Yang Jeong-sook, an independent member of the National Assembly's Political Affairs Committee, an analysis of the number of subscribers to domestic OTT (online video services), music, webtoons, and web novels using Apple devices, along with the increased app prices, estimates that if the price hikes are fully reflected in content usage fees, consumers could face an additional annual burden of up to 350 billion won.

If the increased Apple price list is applied stepwise to current paid users, the additional annual burden on domestic users is estimated to be 184.8 billion won for music content, 110.7 billion won for OTT (internet video services), and 50.6 billion won for webtoons and web novels, totaling approximately 346.1 billion won.

Rep. Yang stated, "If the increased Apple price list is applied stepwise to current paid users, there will be an additional annual burden of 350 billion won, including 184.8 billion won for music content usage fees," adding, "Furthermore, there is concern that Android app prices may also be driven up."

This content was produced with the assistance of AI translation services.