Tech behemoth Apple is allegedly in talks with executives from media companies and networks about the prospect of offering ad space for TV+ streaming platform, possibly as early as next year.
According to media reports, Apple intends to sell video ad spaces in early 2023, presumably for its Apple TV+ platform.
As per reports, Apple wants to increase its advertising revenue from its current level of $4 billion annually to double-digit numbers through this ad space for TV+. Apple executives believe TV+ has untapped potential. The company’s advertisements are currently dispersed throughout display adverts for applications in the App Store, News and Stocks applications, and other apps on iPhone, iPad, and Mac. While some shows on Apple TV already have featured adverts, these did not come for Apple.
Ad-supported tiers also aid in curbing price rises as streaming providers put more emphasis on profitability than subscriber growth. In December, Disney+ will introduce an ad-free tier for the same $7.99 monthly fee as the current ad-free tier.
Apple’s involvement in live sports is also tied to the availability of its video ad inventory. On the TV+ platform, MLB Friday Night Baseball has already generated some advertising revenue, but so far, MLB Network, not Apple, has been the seller of these commercials.
Eddy Cue, Apple’s executive VP of services, claimed to have reorganized services management in May to put a greater emphasis on streaming and adverts.
In order to entice users on a budget, streaming providers Disney and Netflix are also attempting to develop ad-based monetization strategies. They are expected to unveil their plans within the next few months.
By 2022, Netflix also plans to introduce an ad tier for subscribers. The decision was taken after the company experienced a significant decline in revenue for the very first time in ten years.
Comparatively speaking to Netflix and Disney, Apple’s customer base in the streaming industry is modest. The tech giant has nonetheless received praise for its high-end, award-winning shows and its expanding sports coverage.
In a period of rising inflation and economic insecurity around the world, an ad-based tier might attract more price-conscious users to the company. Next year, Apple will also broadcast Major League Soccer events. Apple is also expected to secure the rights to broadcast NFL Sunday Ticket along with other major sports events.
Millions of prospective viewers will watch these live sports programs, which will increase advertising sales. Currently, an Apple TV+ membership in the United States costs $4.99/month or $49.99/year.
Apple, though, is fully committing to the “premium content” brand. It might adopt a price increase for its ad-free membership along the lines of Disney+ and launch an ad-supported tier at the existing $4.99 pricing. Additionally, Apple TV+ features a tonne of acclaimed, brand-friendly programs like “Ted Lasso” and “The Morning Show” that marketers would undoubtedly want to capitalize on.
Some of Apple’s Big Tech competitors have expressed disapproval of the company’s growing ad presence. However, since so many streaming platforms are entering the ad-tier market, Apple TV+’s decision will be considerably simpler to defend.
Apple Inc. owns and runs Apple TV+, a paid streaming service available in the United States. It debuted in 2019, and it offers a variety of original movies and TV shows under Apple Originals production.
I am a law graduate from NLU Lucknow. I have a flair for creative writing and hence in my free time work as a freelance content writer.