Apple TV+ Appears to Be Making Preparations to Launch Ad-Supported Tier
Apple TV+ Appears to Be Making Preparations to Launch Ad-Supported Tier
Apple TV+ is the last major streaming service in the United States without an ad plan, but that looks set to change.
Apple TV+ has been in no rush to launch an ad-supported streaming plan. The platform has been more focused on crafting its high-quality originals, but there have been several hints over the years that the streamer was slowly, but surely, moving toward the creation of a plan with ads. The biggest came in March when the company hired a new advertising executive, and this week Apple has given the surest sign yet that it plans to launch an ad plan soon. According to a report from The Telegraph, Apple has held meetings with a top ratings agency in the United Kingdom regarding tracking data for ads on its streaming service.
Key Details:
- Apple has held talks with BARB officials in recent weeks to talk about options for tracking ads on Apple TV+.
- The move is the latest sign that Apple wants its streamer more in line with other major services based in the U.S.
- Profit generation has not been a primary goal for Apple TV+, but that appears to be changing.
The report from The Telegraph indicates that key Apple figures have been meeting with officials from the Broadcaster’s Audience Research Board (BARB), a jointly-owned agency operated by top British broadcasters like the BBC, Sky, and others.
Apple TV+ is already tracked by BARB in the U.K. to provide viewership data for TV shows and movies on the service, but the latest series of meetings have centered on how to track advertising metrics should the service eventually introduce an ad plan. BARB would need to deploy additional tracking tech to measure ad impressions and other data on Apple TV+.
The platform is the last of the top streamers in the United States to bring on a plan with ads. Prime Video launched its ad plan in January via an unusual pricing shift, joining Netflix and Disney+ as services to launch ad plans of their own in the past two years.
Why is Apple TV+ Building an Ad Tier Now?
There could be any number of reasons for the timing of this move from Apple. But put into the context of numerous other major stories surrounding Apple TV+, it becomes clear that Apple believes it’s time to see its streamer become a major profit center for the company, or at least one that doesn’t consistently lose substantial sums.
This should hardly come as a surprise, given current trends in streaming. Wall Street investors want to see streamers become a profitable business, and even big tech firms like Apple cannot hide their services behind their device manufacturing revenues forever. Successful ad-supported streaming plans generally bring in more money than ad-free plans once they get up and running, and a boost in revenue is one key piece of the equation to creating streaming profits.
The other key piece is slashing costs, which is also in Apple’s plans for the immediate future. The company promised to pull back on spending for originals on its streaming service earlier this month, and is also talking with major studios about licensing more movies, which will give it more content to offer viewers as it cuts budgets for originals.
Combine those facts with the continuing determination to launch an ad-supported plan, and it’s clear that Apple expects to see better financial results from its streaming service going forward. No company can afford to have its streamer creating a drag on its balance sheet any longer, even one with as many alternate revenue streams as Apple has.
Apple TV
Apple TV (formerly known as Apple TV+) is a subscription video streaming service for $14.99 per month, offering a growing slate of original series, films, documentaries, and specials. Unlike other platforms that combine licensed titles with originals, Apple TV is built entirely around exclusive programming, making it the home of critically acclaimed hits such as “Ted Lasso,” “Severance,” “The Morning Show,” and “Silo.” Its lineup continues to expand with award-winning dramas, comedies, family-friendly shows, and blockbuster original films like “CODA,” which won the Academy Award for Best Picture.