Shares of Universal Music Group NV–the music major behind The Weeknd, Billie Eilish and Taylor Swift–jumped Tuesday after Apple Inc. raised the price of its Apple Music streaming service, a move that is expected to bring in additional revenue for the world’s largest music company.
At 0730 GMT, Universal
shares were 9% higher at EUR20.60.
The iPhone maker
said the cost of an Apple Music subscription in the U.S. went up $1 a month to $10.99. Apple Music’s annual cost rose to $109 from $99. The tech giant, which also raised prices for its Apple TV+ streaming service, attributed the increases to the rising cost of licensing music.
Higher Apple Music subscription costs should translate into more streaming revenue for Universal, analysts at Citi wrote in a note to clients.
“As Apple itself notes, one of the drivers of the price increase was the need to