Apple is considering an ad-supported tier for its streaming service, Apple TV+, in the UK, similar to strategies by Netflix, Disney+, and Amazon Prime Video. Currently ad-free, Apple TV+ has been exploring ads, meeting with the UK’s Broadcaster’s Audience Research Board (BARB) and US organizations for data collection. In March, Apple hired Lauren Fry, a former NBCUniversal executive, to help expand its video advertising team.
The Telegraph reports on Apple’s discussions with BARB in the UK, while an unnamed media source suggests Apple aims to provide “a very good ad experience with probably a low ad load,” according to Techradar. This could generate quite a bit of revenue, which would offset Apple’s investment of over $20 billion in original programming for Apple TV+.
Apple has already included limited advertising in its live sports events, such as Major League Soccer coverage. Competitors like Netflix and Disney+ have successfully launched ad-supported tiers, attracting more subscribers and increasing revenue. As MacRumors points out, Netflix reported record revenues, partly due to a 34% increase in subscribers to its ad-supported tier.
Apple is expected to introduce a lower-cost, ad-supported tier for Apple TV+ to compete with rivals. However, the company may need to implement additional data collection techniques to accurately track advertising metrics.
What Does This Mean for Subscribers?
If you’re an Apple TV+ subscriber, you’ll likely have the option to save some cash by switching to an ad-supported plan. But if you prefer an uninterrupted viewing experience, you can stick with the ad-free tier.
Either way, Apple’s move into advertising on its streaming platform marks a significant change for the company. It’ll be interesting to see how this plays out and what impact it has on the streaming landscape as a whole.
