Looks like Apple is developing a full-fledged advertising tier for Apple TV+
Video advertisements could come to Apple TV+ as the streamer appears to be actively developing an ad-supported tier for its video-streaming service.
One of the benefits of Apple TV+ is the lack of advertisements, as Apple doesn’t run video advertisements during shows except for its own pre-roll ad. Apple TV+ doesn’t even offer an ad-supported tier. We heard before that the company was contemplating running ads on Apple TV+. The Telegraph reports today that the Cupertino tech giant had held talks with the United Kingdom’s ratings agency to “discuss potential options for tracking adverts” on Apple TV+.
Apple inches closer to running ads on Apple TV+
The report claims Apple held talks with the UK’s Barb ratings body, which provides not only official viewing data for British TV but also tracks viewing stats for Apple TV+ films and shows such as Ted Lasso and Severance. The paper has learned that executives discussed potential options for tracking adverts on Apple TV+ as Barb would need to “deploy additional data collection techniques to capture advertising.”
The writing has been on the wall for some time now. The biggest indication came when Apple poached NBCUniversal executive vice president of advanced advertising and partnerships, Joseph Cady, in March. Business Insider reported that Apple hired other ad executives at NBCU, Peacock, and FanDuel.
Those moves suggest that Apple may either start showing ads for paid service or introduce a fully-fledged advertising tier for Apple TV+, which seems more probable. Apple TV+ better not show ads in the paid tier, as many people could cancel the service. On the other hand, an ad-supported service without an additional monthly fee could help raise the visibility of Apple TV+ and persuade more people to give it a chance.
Apple TV+ offers good value but is still struggling
Apple TV+ has yet to capture a significant market share of the video-streaming market, but a recent Kantar report suggested the service accounted for only 0.2 percent of TV viewership in the United States versus eight percent for Netflix. Apple doesn’t disclose viewership data for Apple TV+ but may be forced to change its mind and start providing stats to attract advertisers to the platform.
After spending more than $20 billion on original content since its debut in November 2019, Bloomberg reported recently that Apple TV+ has cut its spending on expensive projects. At the same time, the service could grow its programming further by licensing content from Hollywood majors and releasing an Android app.
The iPhone maker could also embrace bundling tactics, with a rumored Apple TV+ and Paramount+ bundle under consideration. Apple will need all the help it can get as the Age of Cutting Cord comes to an end and we enter the Age of the Bundle.
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