Apple TV Plus Considers Ad-Supported Tier to Compete with Netflix and Disney+

July 30, 2024
Apple TV Plus Considers Ad-Supported Tier to Compete with Netflix and Disney+
  • Apple is exploring the introduction of an advertising tier for its Apple TV Plus streaming service, having engaged in discussions with the UK's TV ratings body, BARB, and U.S. ratings organizations to assess advertising metrics.

  • Currently, Apple TV Plus is the only major streaming service without a commercial tier, while competitors like Netflix and Disney+ have successfully launched ad-supported options to attract subscribers.

  • This potential move towards an ad-supported tier aligns with strategies adopted by competitors, responding to economic pressures and rising subscription costs that have led to customer cancellations.

  • The introduction of ads could be viewed as a necessary measure to avoid further price increases for Apple TV Plus subscriptions, which have already seen hikes in recent years.

  • As Apple seeks to cut costs after investing approximately $20 billion in original programming, the addition of advertisements may serve as a new revenue stream.

  • To bolster its advertising capabilities, Apple has made strategic hires, including a former NBCUniversal executive, indicating a serious commitment to integrating ads into its platform.

  • While Apple TV Plus currently does not display third-party ads, viewers are already exposed to promotions for Apple's own shows, suggesting a gradual shift towards advertising.

  • Reports indicate that Apple TV Plus generates significantly less viewing in a month than Netflix does in a single day, highlighting the need for new strategies to boost engagement.

  • Despite its critical acclaim, Apple TV Plus has struggled to capture significant market share compared to its competitors, making the introduction of ads a potentially pivotal move.

  • Competitors have seen increased subscriber numbers and revenue from their ad-supported tiers, with Netflix reporting a substantial boost in new signups since its launch.

  • For Apple to successfully implement advertising, it will need to enhance its data collection methods to accurately track ad performance and viewer engagement.

  • While Apple has not yet committed to a full ad strategy, it has previously experimented with limited advertising during live sports events, indicating a willingness to explore this avenue.

Summary based on 7 sources


Get a daily email with more Tech stories

More Stories