Ads may be the bane of TV viewers’ existence, but there’s no denying that ad-supported tiers offer a cheaper way to watch your favorite programming, especially as streaming platforms continue to hike their rates. Services including Hulu, HBO Max, Disney+, and Netflix already rely on ad-supported models to provide their users a multi-tiered subscription option, and Apple TV+ may not be far behind. The Information reports that Apple has hired advertising executive Lauren Fry to focus on building an advertising component for Apple TV+.
The news comes after reports in October indicated that Apple had been speaking with advertising agencies about the possibility of introducing ads on Apple TV+. Todd Teresi, vice president of ad platforms at Apple, was one of those representatives, which indicates that the company wants to move quickly with its plans. The report speculated that an ad-supported Apple TV+ might debut as early as 2023 due to the proactive manner in which Apple had been meeting with advertising agencies.
Apple TV+ is already one of the cheapest premium streaming services available, even after raising its price to $6.99 last fall. Since HBO Max’s ads plan debuted in June 2021, having an ad-supported tier of a streaming service is now fairly common. With the hiring of Fry, it appears that Apple is moving forward with plans to ultimately run ads alongside programs.
The major reason that Apple TV+’s price is still more than 50% cheaper than some of its competitors is that it simply doesn’t have the library of content that services like Disney+ or Netflix do. Still, programs like “Ted Lasso” and “Severance” have received widespread praise from viewers and critics, transforming it into a sort of niche, prestige streamer that is gradually laying the groundwork for future growth. Apple could increase the number of people who watch those shows and earn generate additional revenue from them at the same time with a free — or even discounted — ad-supported tier.
Ads, though, on the streamer aren’t a new thing. Apple has been relying more on ads to increase its revenue. In 2021, it expanded the App Store’s ad options, and it is rumored that it wants to add ads to apps like Maps, Books, and Podcasts. Apple also airs ads during its Major League Baseball and Major League Soccer games. The company has made it clear that it wishes to expand its advertising division.
If it decides to take the plunge, it’s very likely that Apple TV+ won’t be the last streaming service to offer ad-supported tiers. Customers are becoming increasingly accepting of ads in streaming content, particularly if they come with a discount. For companies, it makes sense because they can simultaneously increase subscription numbers and advertising revenue, satisfying both sides of their growth goals.
Apple TV+
Apple TV+ is a subscription video streaming service for $9.99 a month that includes high-quality original shows and movies including Best Picture winner “CODA,” popular sitcom “Ted Lasso,” and dramas like “The Morning Show” and “Severance.” Apple TV+ is also home to MLB baseball games on Friday nights and MLS Season Pass.