The major streamers out there have all launched ad-based tiers in an attempt to increase revenue without constantly raising monthly subscription prices. Netflix, Disney Plus, and Amazon have all done it. And it looks like it’s working out great. Netflix is one example. The streamer seems more interested in having customers join the ad tier rather than a cheaper, ad-free variant.
It was probably only a matter of time until Apple considered bringing ads to Apple TV Plus. From the looks of it, Apple might soon release an ad-based tier in some markets. The UK might be among the first ones. That’s where Apple is apparently exploring launching an ad version of Apple TV Plus, though prices for such a subscription haven’t leaked.
According to The Telegraph, Apple has held talks with the UK’s TV ratings body. That’s a sign that Apple’s streaming service is preparing for ads.
Apple execs met with Barb (not that Barb) in recent weeks to discuss tracking ads on Apple TV Plus. Barb, provides viewing data for British TV, similar to Nielsen ratings in the US . That includes tracking viewership on streaming services, hence the meeting with Apple. Barb is jointly owned by broadcasters like BBC, ITV, Channel 4, and Sky.
The report notes that Barb already keeps track of Apple TV Plus viewership. However, Barb will require new data collection features to track advertising on the platform.
It’s unclear when Apple will launch an Apple TV Plus ad subscription. But all the signs point to the imminent arrival of ads on the platform. It’s not just the meeting with Barb. A few days ago, we learned that Apple is desperately trying to cut costs for Apple TV Plus productions. Apple is reportedly spending some $20 billion a year on original content.
While its movies and TV shows are routinely praised and get awards attention, Apple TV Plus is hardly the Netflix competitor Apple would have wanted it to be. We learned last week that Apple TV Plus generates less viewing in one month than Netflix in one day. The latter is a giant, of course.
But Apple TV Plus has been around for years and hasn’t been able to capture a more meaningful share of the market. Apple isn’t about to give up, but it might make changes to the way Apple TV Plus works. That includes cutting spending while potentially introducing ad tiers in the markets where Apple TV Plus is available.
As a reminder, Apple hired Joseph Cady in March. Cady is a former advertising executive at NBCUniversal. He’ll potentially help Apple increase Apple TV Plus revenue with the help of ads.
That said, no specifics about a future ad-based Apple TV Plus tier have leaked. We have no idea how much the cheaper Apple TV Plus subscription would cost or whether Apple will just bring ads to the current version and launch a more expensive ad-free tier alongside it.
Also, we have no idea how many ads Apple TV Plus will play in an hour, which is important to consider before choosing between an ad-based and ad-free subscription.
Finally, there’s no telling which markets will get ads first. Apple may be holding talks with Barb in the UK, but other major markets will likely get ads once Apple goes forward with the plan.
The ad-free Apple TV Plus subscription costs $9.99 per month in the US and £8.99 in the UK after a free trial period.
