Recent reports suggest that Apple is likely to introduce an ad-supported tier for its streaming service, Apple TV+. According to The Information, the tech giant has hired Lauren Fry, a former ad tech executive, to lead efforts in building a video advertising business for the streaming platform. Fry brings years of experience from previous ad sales roles at AT&T and Comcast, as well as her most recent stint at digital advertising firm Simulmedia.
The move towards more ads on Apple TV+ is in line with the company’s recent actions, as it began displaying additional ads within the App Store towards the end of last year. This could potentially lead to search ads appearing in other first-party software such as Apple Maps. Furthermore, Apple has already started showing ads alongside Major League Baseball games, and Bloomberg reported last year that the company was building a live TV ad network to support its 10-year deal with Major League Soccer.
An ad-supported tier would be the most straightforward way for Apple to introduce more ads to TV+. Several other streaming platforms such as Netflix and Disney+ already offer ad-supported tiers to customers, as they are an easy way for those services to broaden their subscriber base.
As the streaming wars continue to intensify, it’s becoming increasingly important for these platforms to find ways to generate more revenue. With the potential introduction of an ad-supported tier, Apple could become more competitive and appeal to a wider audience with its streaming service. However, it remains to be seen how this move would be received by current Apple TV+ subscribers, as many have praised the platform’s ad-free experience.
