Apple Music price increase pushes Spotify, Amazon and Universal Music up on the stock market

In case you missed this info announced by chance just before a big wave of updates, Apple Music has been more expensive since yesterday. The individual subscription has increased to €10.99/month (+€1) and the family subscription to €16.99/month (+€2). A way for Apple to line its pockets when the growth of its services is no longer so strong? The company denies this and maintains that this increase is driven by higher licensing costs.

If customers are making soupy faces, not everyone is unhappy with this increase. Apple has assured that artists will be better paid, it remains to be seen in what proportions. Investors in Universal Music Group also took the news with a smile: the major title jumped 8% to €20.41 this morning. If the licensing costs are higher for Apple, it means that UMG, which has The Weeknd, Billie Eilish and Taylor Swift in its catalog, should receive more money.

Spotify and Amazon also saw their share prices rise, up 9.4%, following Apple’s announcement. The reason is not the same as for Universal: the Premium offers from Spotify and Amazon Music have not seen their prices increase and have therefore become more competitive than Apple Music, a good point to attract new customers. However, one wonders whether these higher license costs do not also end up being imposed on the competitors. And even without that, could the increase in the price of Apple Music serve as a detonator for a more general increase like the one happening in the video streaming market?

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