Apple has raised its price for the Apple Music subscription in India, which is yet another change in this rapidly changing music streaming industry. There are questions among subscribers to the technology giant why they were asked that price hike (new price) and how this will affect both existing and prospective subscribers.
The decision to raise the rates is in line with the move by digital subscription services globally to adapt business models to the cost of operating costs, licensing fees, inflation, and the cost of new features and content. Apple has not publicly attributed the increase to a single reason, but industry analysts point to other reasons for the change.
Music licensing is one of the most expensive expenditures for music streaming services. Music streaming services such as Apple Music pay royalties to record labels, music publishers, artists, and rights holders every time subscribers stream music. Even as global music markets are changing, licensing agreements and royalty structures are constantly changed and therefore subscription costs are increasing for content providers.
Another factor is Apple's ongoing investment in its music ecosystem. Over the years, Apple Music has added Lossless Audio, Spatial Audio with Dolby Atmos, synchronized lyrics, curated playlists, personalized recommendations, offline listening, and cross-device integration on iPhone, iPad, Mac, Apple Watch, Apple TV, and HomePod devices. To maintain these services will require extensive investment in technology infrastructure and cloud services.
Industry experts believe inflation and higher operational expenses have also impacted the price change as well as higher costs have led to higher inflation and higher wages for workers.
A global streaming platform comes at a price in terms of cloud computing, data storage, cybersecurity, software development, customer support, and ongoing platform maintenance. Companies regularly review subscription pricing so long as long-term sustainability is maintained, with investment in service upgrades is maintained with regular review of subscription pricing.
Apple’s broader services business has been one of its fastest-growing revenue segments. It offers services like Apple TV+, iCloud+, Apple Arcade, Apple Fitness+, Apple News+, and Apple One subscription bundles. Competition in the digital entertainment business is so intense that pricing strategies are often in flux to bridge the gap between profitability and customer value.
India's pricing has also increased by an order of magnitude, and this is as global as the price revision in India. Subscription fees from a number of major streaming platforms have increased in recent years in many countries. Companies say that periodic price changes help maintain high-quality content libraries, enhance user experience, and help creators, and pay royalties.
Although Apple Music has grown, there are still things it does better than its competitors. Subscribers get access to tens of millions of songs, ad-free streaming, high-quality audio, editorial playlists, live radio stations, artist interviews, and deep integration with Apple’s ecosystem.
But the price increase could cause people to compare alternatives available in the Indian market. Streaming services like Spotify, YouTube Music, Amazon Music, and JioSaavn are competing aggressively with subscription plans and promotional pricing. Consumers now have a lot of options depending on their listening tastes, device ecosystem, and budget.
If current Apple Music subscribers are new to the new pricing of Apple Music, they will pay for their subscription for monthly or annual subscription, and it will likely increase monthly or annual rates depending on the plan.
Apple Music subscribers are asked to check their subscription details in their Apple account settings to see how the new pricing will impact what is the new price and when the new pricing will be applicable for their plans (and billing cycle).
Technology analysts believe that while some subscribers may rethink their subscriptions because of higher costs, loyal Apple users will likely stick with the service because it is tied in with other Apple devices and services. Family plans, student discounts, and bundled subscriptions through Apple One may also provide value for many customers.
The price revision is indicative of a wider trend in the digital subscription economy, where firms are increasingly looking to sustain longer-term growth rather than aggressively increase their prices. Given that content creation costs, licensing agreements, and technology investments are increasing, periodic subscription adjustments are going to be the norm in streaming platforms.
Ultimately, Apple’s pricing for Apple Music subscription services in India has gone up due to higher operating costs, premium features, royalty obligations, and a business strategy based on a longer-term strategy.
The new price point may persuade subscribers to recalibrate their subscription, but it is still the company's position as a premium music streaming service that has the best quality audio services, exclusive features, and a good user experience.
