Apple is reportedly in discussions to introduce advertising on its streaming service, Apple TV+, according to recent reports from The Telegraph. The company has been engaged with the Broadcaster’s Audience Research Board (BARB) in the United Kingdom to explore technologies necessary for effective ad-tracking. Currently, any advertising on Apple TV+ has been limited to live sports events, specifically during Major League Soccer broadcasts. This move towards an ad-supported tier could mark a strategic shift aimed at enhancing revenue streams.
Industry Context and Comparison
The prospect of an ad-supported Apple TV+ aligns with a broader trend in the streaming industry, where competitors such as Netflix, Disney+, and Amazon Prime Video have successfully implemented lower-cost, ad-supported subscription tiers. These models have not only attracted new subscribers but have also provided additional revenue, especially as companies face increased pressure to offset mounting content creation costs. Apple has previously invested over $20 billion in original programming for the platform, and the introduction of an ad-supported model may serve as a response to recent reports indicating a reduction in its content expenses.
Recruitment of Advertising Experts
Apple has been proactive in enhancing its advertising capabilities, evident from its recent recruitment efforts. Notably, the company added Joseph Cady, a former executive from NBCUniversal, to its team. This hiring points toward Apple’s intention to strengthen its position in the advertising space as it moves closer to a potential ad-supported model. The influx of experienced professionals from the advertising industry underscores Apple’s commitment to developing robust ad offerings and may signal its readiness to engage more actively with advertisers.
Implications for Subscribers and Future Plans
While the exact timeline for introducing an ad-supported tier remains uncertain, speculation suggests that an announcement may occur during Apple’s traditional fall event, which typically showcases new iPhone models. This timing could leverage heightened consumer interest, particularly among new iPhone buyers, potentially encouraging them to maintain subscriptions to Apple TV+ post-trial period. The company’s ability to effectively manage customer responses to these changes will be critical, as subscribers’ reactions to the introduction of ads could significantly influence the overall perception and success of Apple TV+ in a competitive streaming market.