A new report claims that Apple might sell ad space for Apple TV+ shows, suggesting that the streaming service could introduce an ad-supported tier.
Apple currently has a thriving advertising business, with roughly $4 billion annual revenue. However, reports suggest that the tech giant wants to grow this number to at least $10 billion per year by expanding its advertising to more apps and services. One such service is TV+.
According to DigiDay, Apple vice president of ad platforms, Todd Teresi, has met with various ad network executives to sell video advertising space. An anonymous media agency further told the publication that they expect to meet with Teresi in November to discuss TV Ads.
“[Teresi] did express interest in expanding their [ad] business,” said the source. “But he also made it very clear that Apple will do nothing unless one, there’s a significant opportunity, and two, they would never do anything to jeopardize the relationship they have with their consumers.”
So how will Apple introduce ads to TV+?
A Possible Ad-Supported Tier on Apple TV+
Apple’s plan for introducing ads into its streaming platform is still a bit hazy. However, DigiTimes suggested a possible ad-supported tier could be in the works.
Apple TV+ already shows ads on its Major League Baseball games coverage, although the league itself sells the ads. Besides, the streaming platform has several original contents on which to run ads. It includes multiple award-winning shows, such as Ted Lasso.
With that said, Apple’s programming is still somewhat limited compared to other streaming services — such as Netflix and Disney+— that offer an ad-supported tier. Also, the tech giant’s streaming platform doesn’t have as many subscribers as the top competitors.
Hopefully, introducing an ad-supported tier could address these issues. Along with boosting ad revenue, the cheaper or free plan could attract more audience to Apple TV+.
“Apple is going to be a very good ad experience with probably a low ad load,” the source said. “They’re already actually very diversified in terms of revenue streams, so there’s less pressure to fit lots of ads.”