Apple is reportedly contemplating a significant shift for its streaming service, Apple TV+, by potentially introducing advertisements. This would mark a notable departure from its current status as one of the few major ad-free streaming platforms.
Recent reports from The Telegraph reveal that Apple executives have been in discussions with Barb, the UK’s TV ratings organization, to explore methods for integrating and tracking ads on their service. Barb, which already monitors viewing statistics for Apple TV+ content, would need to implement additional data collection techniques to effectively measure advertising performance.
The potential move to an ad-supported model aligns Apple with industry giants such as Netflix, Disney, and Amazon Prime, which have recently launched ad-supported tiers to attract more subscribers and generate additional revenue. This shift comes as streaming services face mounting pressure to enhance revenue streams and expand subscriber bases amidst a challenging economic landscape.
In a related development, Apple has taken steps to bolster its advertising efforts by hiring Joseph Cady, a former NBCUniversal advertising executive, in March. This strategic hire highlights the tech giant’s intention to strengthen its ad division, a move that could pave the way for an ad-supported tier on Apple TV+. Historically, Apple has engaged in limited advertising, including high-profile spots during Major League Soccer coverage, where ad slots were sold for up to $4 million.
Apple’s potential introduction of ads also comes at a time when it is reportedly reducing its spending on original content after investing over $20 billion in Apple TV+. This cutback follows a period of intense competition in the streaming market, where companies like Netflix and Disney have successfully attracted subscribers with lower-cost, ad-supported options. Notably, Netflix recently reported a 34% increase in subscribers for its ad-supported tier, reflecting a growing consumer interest in more affordable streaming choices.
The latest discussions with Barb suggest that Apple may be preparing to offer an ad-supported tier in the UK, following similar exploratory meetings with ratings organizations in the US in 2022. If Apple moves forward with this plan, it could introduce a lower-cost subscription option alongside its current ad-free tier, potentially priced around $5.99/month. Such a move could enhance Apple TV+’s appeal and competitiveness in the crowded streaming market.
(via The Telegraph)
