As MacDailyNews exclusively reported last August via our little birdie, Apple looks to be planning to launch an ad-supported version of its Apple TV+ streaming-video platform, likely this year.
Hearing from a little birdie that Apple is planning to launch an ad-supported version of its Apple TV+ streaming-video platform. pic.twitter.com/tfbt7JyMLs
— MacDailyNews (@MacDailyNews) August 4, 2022
A new report claims that Apple has hired Lauren Fry in order to help build “a video advertising business,” revealing the company’s plan to bring adverts to its Apple TV Plus streaming platform.
According to The Information, Apple wants to use its broadcasts of Major League Baseball and MLS soccer, which began over the weekend, to build an ad sales business on the platform.
The report claims that Fry’s title is unclear, but that ads on its sports broadcasts “is likely just the beginning for Apple,” citing executives who say Apple is expected to eventually run adverts alongside its own TV shows and movies. There is also talk of an ad-supported Apple TV Plus tier that would let people access the service at a lower price if they watch adverts, a bit like Netflix.
MacDailyNews Take: Last October, Adam Levy wrote for The Motley Fool that Apple TV+ could charge $4.99 per month for an ad-supported entry-level tier.
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Ads = No watch
I’m sure Apple will find a customer-friendly way to do this, with choice built in.
We have to keep in mind, for most people around the world Monthly Fee = No Watch
Lower fee for ad supported? Wouldn’t pay a penny to watch an ad. DOA
Increasingly Apple + is looking like a bad idea. Sure the content is getting somewhat better and their are a few real gems but people’s tastes across age and culture very greatly and Apple + content is way to thin. Netflix and Disney sink billions and billions each year just to keep up with the churn. The up keep and resources needed to keep consistently producing enough relevant content over such a broad demographic, in an already over saturated industry, makes no sense. Why chase being a streaming platform when it puts you in direct competition with other streaming platforms that relay on Apple hardware to provide their service. Apple should have partnered with all the major content providers and let the apple customer choose which streaming service aligns with their taste. Instead now Apple has to create massive amounts of new content across all major genres forevermore. all for very little actually profit.
“Apple should have partnered with all the major content providers and let the apple customer choose which streaming service aligns with their taste”
That was Apple’s original model, and the industry didn’t take them up on it.
Long-term I’m not sure what the future holds for AppleTV+
I agree wth you that it seems like a very tough business, that can only possibly work at scale. But the old television networks all did it (produce mountains of new content each year), and that was just at a national scale. If anyone can do it, Apple can. They have global reach for their content, and a billion customers with billions of devices.
I suspect this ad-supported model is the key to the business in the long-term. They can reach so many customers around the world with sports and top-tier film and television series at no cost. The world is a big place, and advertisers (and consumers) love the 30 second spot, as long as it’s not 25 per hour, which was criminal.
And for those who don’t want to see a handful of ads here and there, hopefully there will always be a paid tier.