Report: Apple to Sell Ad Space for TV+ Next Year, Hinting at Possible Ad-Supported Tier

[I7guy]

If that was the main reason, Apple would've been raising U.S. iPhone prices across the board yet Pro and Pro Max models have been the same price since they launched in 2019 (they're actually $50 cheaper for 256GB and 512GB versions), the 2022 SE is only $30 higher priced than the 2016 model. Also, price increases overseas have largely been due to currency exchange rates not Apple having to find additional or expanded ways to make money.

I think there is a sweet-spot to smartphone prices. With the potential pending loss of billions of dollars, it's easier to make it up with an advertising tier.

Apple is simply following what others like Disney+ and Netflix are doing.

I think the effort has been accelerated. This legislation has been in the works for a while, so it's not new news to apple.

 

[nt5672]

Says the company that intents to value your privacy. People that pay to place ads want to know demographics and other personal information. I know, Apple says they anonymize the info. But at some point the money will win out and Apple will provide what the ad placers want. It always happens in companies with no values.

 

[ProfessionalFan]

Probably for the sports packages (including rumored Sunday Ticket) they have, gotta recoup that licensing money somehow.

 

[JippaLippa]

Hope the tier I'm already paying for in Apple One will remain ad-free

 

[nburwell]

This smells of Apple raising the price of ATV+ and then having the ad-supported tier be $4.99. I could be wrong. But with Apple adding MLS games next year, in addition to MLB Friday Night Baseball (and possible NFL Sunday Ticket), I could see a price increase coming.

 

[webkit]

Good way to throw away the “premium” feeling for such a small amount.

They're not really throwing away anything, they're expanding plan options for customers. The "premium feel" ad-free plan will almost certainly still be there.

More and more streaming services are and will be offering ad-supported plans, it's not surprising Apple is looking to follow the trend.

 

[webkit]

In order for ads to be effective, they need to be targeted ads.

It can be helpful but it is not absolutely necessary. Plenty of print, radio, television, online, etc. advertising is not targeted to each specific viewer but rather more broadly to the expected viewing demographic for the given content.

 

[jjudson]

The frog is in the pot, and the heat is turning up.

I love to pay for a sub and watch ads, too, said no one…

…ever.

 

[webkit]

A free Ad-Supported tier would provide AppleTV+ for those who can't afford $5.00/month.

Don't count on it being free. My guess is that the price of the ad-free plan will increase and the ad-supported plan will be discounted off that but won't be free.

 

[doboy]

I’ve had a free 3 month promo going for the last 2 1/2 months and I still haven’t watched anything on there.

I know they have a couple decent shows, but there isn’t enough content for me to pay for an ad free version. And I wouldn’t sit through their ads if they did offer a free version.

Nature shows are really good on ATV+

 

[tennisproha]

i would be out if they added ads to the current tier or apple one. i hate ads more than anything

 

[webkit]

I think there is a sweet-spot to smartphone prices. With the potential pending loss of billions of dollars, it's easier to make it up with an advertising tier.

I think the effort has been accelerated. This legislation has been in the works for a while, so it's not new news to apple.

Very doubtful it's due to legislation. What may have accelerated it is streaming services like Disney+ and Netflix. More and more streaming services are and will be offering ad-supported plans, it's not surprising Apple is looking to follow the trend.

 

[I7guy]

Very doubtful it's due to legislation. What may have accelerated it is streaming services like Disney+ and Netflix. More and more streaming services are and will be offering ad-supported plans, it's not surprising Apple is looking to follow the trend.

Or, it could be both factors. Raising smartphone price to compensate by loss of app store revenue, in my opinion is a bad bet. An ad free tier is a better approach.

 

[Somian]

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

I agree. I tried News+, but since it still has ads, I feel like… what’s the point of the subscription?

A PiHole seems to not really close the gaps either.

I’m also annoyed by Apple TV+ already because it often shows ads in the beginning (trailers of other Apple TV+ shows).

I wish there was a truly ad-free tier with no trailers and no autoplay/skipping credits

 

[brofkand]

The consolidation of streaming services is going to be a great reckoning over the next few years. Only a few are going to last.

 

[sw1tcher]

It can be helpful but it is not absolutely necessary. Plenty of print, radio, television, online, etc. advertising is not targeted to each specific viewer but rather more broadly to the expected viewing demographic for the given content.

Yes, there's still plenty of non-targeted advertising because not every medium is suitable for audience targeting. How are you going to target people on print or through over-the-air broadcast radio?

The point is that non-personalized ads are not what advertisers prefer as they're more costly to run/see a lower return. Just look to Facebook, Snap, Twitter, and Pinterest as proof. After Apple rolled out their iOS app privacy setting, they all saw huge declines in ad revenue because advertisers were no longer able to tell if their ads were effective since Facebook, Snap, et al were no longer able to effectlively collect and share their user data.

Snap shares plunge 25% as Apple privacy changes hit ads business

Shares of Snap Inc plummeted 25% on Thursday after the owner of photo messaging app Snapchat said privacy changes implemented by Apple Inc on iOS devices hurt the company's ability to target and measure its digital advertising.

www.reuters.com

Facebook says Apple iOS privacy change will result in $10 billion revenue hit this year

Apple's privacy feature disrupts the behind-the-scenes mechanics of many mobile ads, especially those that confirm whether a purchase or download was made.

www.cnbc.com

Apple privacy changes wipe $278 billion market value from 4 companies

A new report notes that since Apple announced privacy changes to iOS 14 last year, Meta, Snap, Pinterest, and Twitter have had $278 billion in market value wiped from their books.

www.imore.com

 

[TVreporter]

They've had some major productions and hiring big name Hollywood stars - I'm sure Apple TV+ is bleeding money.

Got to make back the money somehow as I doubt subscriptions are cutting it.

Adding ads is no surprise, but a big disappointment.

 

[sw1tcher]

They've had some major productions and hiring big name Hollywood stars - I'm sure Apple TV+ is bleeding money.

Got to make back the money somehow as I doubt subscriptions are cutting it.

No way $4.99/mo is covering Apple's production costs. Don't forget that Apple gave away a year of TV+ with device purchases (that's how I tried out the service) and sell discounted versions to T-Mobile and Verizon so they can bundle it and offer it to their wireless subscribers. This means Apple's average revenue per subscriber is actually less than $4.99/mo

 

[hagar]

Hey Apple, as you can’t be bothered to make all features of your ecosystem available internationally (while still charging full price everywhere), let’s agree on keeping ads US-only. Thanks!

 

[Apple_Robert]

I will not pay for AppleTV + if it has ads moving forward. I have plenty of content on my Plex server as is. I can get by without AppleTV+ if push comes to ad shove.

 

[brofkand]

I haven't paid for AppleTV+ and I've had it since launch. No, I don't subscribe to Apple One or anything. I got a year free with the purchase of an iPhone XR or something, Apple extended it several times, and have been getting trials and additional months free ever since - one time I looked on my Best Buy receipt when I bought an Otterbox and it included 3 free months of the service (lol). I think my free reign finally ends around February but I have no intention whatsoever of paying for it. So either I continue to get it free or I don't get it at all, no skin off my nose.

 

[ApostolisApo]

Give us a break will you.

What part of my observation do you not agree with?

 

[bpeeps]

Watching Season 3 of For All Mankind, and it’s better than anything I’ve seen on Netflix for 6 months.

Dahmer? Stranger Things? Squid Games?

Yeah but they are trailers for their own shows.

They're the type of person to complain about movie trailers in a theater.

 

[Will Co]

It's a free market economy folks. Apple is free to charge whatever it likes for it's services, including loading them with ads, even where the content has already been paid for. And we're free to cancel or reduce our subscriptions. So vote with your wallet. It's the only voice you have.

If my Apple One subscription becomes loaded with more adverts (I already put up with enough in Apple News) then I'll adjust my subscription downwards. That's just greedy, Apple, and I don't like greed. If they use ads to support a lower cost or free tier, then that's fair enough.

 

[darngooddesign]

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.

View attachment 2093300

Time Cook now... Steve Jobs would never...

Remember when Steve Jobs talked about how great iAds were?