Apple looks set to join other streaming TV providers by adding a tier to Apple TV+ that includes advertising.
What’s less clear is whether customers will have the option to pay less and watch commercials, as is the case with Netflix and Disney, or if Apple will choose the route taken by Amazon and request that those who don’t want to watch ads pay more.
The latest evidence that Apple is investigating the practicalities of introducing ads on Apple TV+ comes via The Telegraph (subscription required), which reports that Apple has been meeting with the U.K. ratings agency Barb to look at options for tracking advertising. It’s not clear from the report whether Apple has held similar meetings in the U.S. and other countries.
Barb, is a joint venture between various U.K. TV channels and the IPA (Institute of Practitioners in Advertising) and provides audience data about viewing figures. Barb already provides Apple with viewing data for Apple TV+ shows, however, the capture of advertising data requires different techniques, suggesting that these meetings do not relate to standard viewer data.
Apple is the only streaming service that has not yet introduced commercials. Netflix introduced a “Basic with ads” tier in November 2022, it costs $6.99/£4.99, or $15.49/£10.99 without ads. Disney’s ad-supported tier arrived in December 2022 and is $7.99/£4.99 with ads and $13.99/£7.99 without ads. In January, Amazon launched ads across its content. Subscribers who don’t want ads must pay $2.99/£2.99 a month on top of the $14.99/£8.99 fee (or $8.99/£5.99 tier if you only want Amazon Prime Video and not the other services on offer).
Another indication that Apple is planning to start an advertising tier of Apple TV+ is the hire of Joseph Cady, a former advertising executive at NBCUniversal. Cady was hired by Apple back in March 2024. Cady isn’t the first such hire. Apple has hired a number of other people with experience in this area, starting with Lauren Fry who was brought into the company in February 2023 to “help build a video advertising business for its Apple TV Plus streaming service,” according to The Information.
Apple isn’t entirely new to advertising-funded TV. It has previously shown adverts on Apple TV+ during Major League Soccer and Major League Baseball games. MLB games are included as part of the regular Apple TV+ subscription while MLS costs $12.99/£12.99 per month or $79/£79 per season for existing Apple TV+ subscribers.
The need to introduce an ad tier is thought to be a response to the cost of living crisis coupled with the increased prices of the platforms, that had caused customers to cancel subscriptions. The cheaper ad-funder tiers are likely an attempt by the streaming companies to boost revenues and maintain subscribers.
Apple increased the price of Apple TV from $4.99/£4.99 to $6.99/£6.99 in October 2022 and then to $9.99/£8.99 in October 2023.
Kantar’s July 2024 figures indicate that, in Britain, Apple had been attracting more new subscribers to its platform than any other streaming service over the past six months, but has now fallen to fourth place with a 12% share. Kantar figures also show that the number of British households with at least one paid video streaming service is in decline.
