Become a MacRumors Supporter for $50/year with no ads, ability to filter front page stories, and private forums.

MacRumors

macrumors bot
Original poster
Apr 12, 2001
68,700
39,612


Apple has reportedly held discussions with media agency and network executives about the prospect of selling ad time on its Apple TV+ streaming service, leading to speculation that an ad-supported tier could eventually be in the offing, possibly as soon as next year.

apple-tv-plus-banner.jpg

According to DigiDay, Apple's advertising chief Todd Teresi has led meetings with holding company executives to sell video advertising space, with more discussions reportedly on the cards in 2022. Citing an anonymous source, the report claims Apple has not asked one agency's network to put aside client dollars in the fourth quarter, suggesting the ad time could be available in early 2023.

Apple is aiming to triple its ad revenue from $4 billion per year to double-digit figures by expanding its advertising to more apps and services, and Apple executives clearly see TV+ as having untapped potential.

Currently, Apple's advertising spots are spread over display ads in its News and Stocks apps, as well as for apps in the App Store, across iPhone, iPad and Mac. Apple also already generates revenue on Apple TV+ with commercials during MLB Friday Night Baseball streams, although those spots are sold by MLB. In 2023, it will be the exclusive home of Major League Soccer for the next 10 years, with ad space and sponsorship deals shared by both Apple and MLS.

It's not clear how Apple might intend to inject ads into its $4.99-a-month TV+ streaming service, but it could potentially be a lucrative revenue driver if the company was to follow the lead of Netflix and Disney+ by providing an ad-supported tier.

Apple still has a limited amount of original content compared to other streaming services, and it is unable to draw the same subscriber numbers as Hulu, Netflix, and Disney+. By offering an ad-supported or even free subscription plan, Apple could increase its low audience figures without sacrificing its commitment to premium original programming and movie content.

In May it was reported that Apple's senior vice president of services Eddy Cue had restructured services management with the aim of focusing more on streaming and advertising. As a result, Teresi has taken on more responsibility and has been reporting directly to Cue since the beginning of the year.

Since then, Apple has been in talks to secure more sports content deals, including a deal for a Big Ten college football and basketball streaming package. Rumors indicate that Apple is also pursuing the National Football League's Sunday Ticket package. In the past, it has also discussed a content deal with Pac-12.

With each effort Apple makes to ramp up its sports offerings, another window of opportunity for ad revenue presents itself. Whether the ad sales strategy that evolves from these moves will fundamentally change the perception of TV+ as a privacy-first player in the streaming services market remains to be seen.

Article Link: Report: Apple to Sell Ad Space for TV+ Next Year, Hinting at Possible Ad-Supported Tier
 
Apple doing a Netflix...

Are they going to integrate/include Apple Arcade within Apple TV+ soon?
 
If they add ads like they did so awfully on News+ even for paying subscribers, I won’t keep my Apple One Premier subscription. I am already paying a lot for their services, I don’t want to be exposed to all these ads. I don’t mind if they create a cheaper plan with ads, but I dont want to see any on mine
 
The biggest FU from all these companies is that they will just increase the price of the ad-free package (short term) before adding the "cheaper" ad-supported plan. They are basically charging double! The end user as well as the advertisers but always try to spin it like they are doing us a good deed by offering these "great" options for everyone.
 
Given that they show me stupid trailers in front of the content, I wouldn’t even be surprised if they added ads to the paid tier.

Given how much they spend on advertisement, I wonder if they shouldn’t just show their own ads and save some money.
 
  • Disagree
  • Haha
Reactions: katbel and lkrupp
Maybe focus on some decent content first, Apple TV+ is barely worth it.

I am enjoying the content on TV+ more so than Disney or Netflix these days, it seems. Currently following See and Bad Sisters. Apple does have lesser content, but they do seem to put in more effort in curating what goes on it, vs the “anything and everything goes” approach for Netflix and I find I appreciative the former more.

As for ads, either that or a price hike would point to TV+ gaining steam and Apple feeling confident enough to raise prices while still expecting to retain the majority of their users.
 
Apple TV+ is already among the least expensive premium streaming services at $4.99/month ad-free but they are likely planning a price increase (it's been the same price since it launched in 2019 while others like Disney+ and Netflix have increased prices during that time) and an ad-supported plan would allow them to continue to offer a sub-$5/month plan.
 
  • Like
Reactions: Johnnyboy55
Apple’s leadership has clearly nosedived in the last 5-6 years. Once thought to be ridiculous ideas like these are becoming the norm. Apple is set to alienate a lot of original users that bought into the version of Apple that genuinely thought differently. This version of Apple is looking more and more like every other sleazy tech company, and just like the rest, they too now have garbage software quality and a lousy overall experience. It’s a sad state of affairs, and it will no doubt remain that way without product people at the top.

Tim Cook is a lost man without a compass.

1665579433975.gif
 
If they added adverts it wouldn't shock me if the ad-supported-tier was actually free.

I dont think ATV+ is worth $5/mth as it is and adding ads makes it even less valued IMO.

(I do know thats unlikely though)

Yeah, they need to do this. I don't mind paying $5/month for it, but they'll get a lot more people who watch things "for free" than they do for a paid tier. I put it in quotes because it is only "free" if you don't count the time wasted watching ads.

I generally look at it while working out in the morning. For All Mankind is good. Severance was completely different. I will probably check out Foundation next.
 
  • Like
Reactions: SFjohn and Ojiisan
Apple’s leadership has clearly nosedived in the last 5-6 years. Once thought to be ridiculous ideas like these are becoming the norm. Apple is set to alienate a lot of original users that bought into the version of Apple that genuinely thought differently. This version of Apple is looking more and more like every other sleazy tech company, and just like the rest, they too now have garbage software quality and a lousy overall experience. It’s a sad state of affairs, and it will no doubt remain that way without product people at the top.

Tim Cook is a lost man without a compass.

[...]
Then those people will go to Android and windows.
 
Register on MacRumors! This sidebar will go away, and you'll see fewer ads.