Apple Considering Running Ads on Apple TV+, Report Says

Apple appears set to join other streaming TV providers by adding a tier to Apple TV+ that includes advertising.

What’s less clear is whether customers will be given the option to pay less and watch ads, as is the case with Netflix and Disney, or whether Apple will go the route Amazon has taken and ask those who don’t want to watch ads to pay more.

The latest evidence that Apple is exploring the practicalities of introducing ads on Apple TV+ comes from the Telegraph (subscription required), which reports that Apple has met with UK ratings agency Barb to explore ad tracking options. The report does not specify whether Apple has held similar meetings in the US and other countries.

Barb is a joint venture between several UK television networks and the IPA (Institute of Practitioners in Advertising) and provides audience data on viewing figures. Barb already provides Apple with audience data for Apple TV+ shows, however, capturing advertising data requires different techniques, suggesting that these meetings are not linked to standard audience data.

Apple is the only streaming service that hasn’t yet introduced ads. Netflix launched a “Basic with ads” plan in November 2022, costing $6.99/£4.99, or $15.49/£10.99 without ads. Disney’s ad-supported tier arrived in December 2022 and costs $7.99/£4.99 with ads and $13.99/£7.99 without ads. In January, Amazon introduced ads across all of its content. Subscribers who don’t want ads have to pay $2.99/£2.99 per month on top of the $14.99/£8.99 fee (or $8.99/£5.99 if you only want Amazon Prime Video and not the other services on offer).

The hiring of former NBCUniversal advertising executive Joseph Cady is another indication that Apple is considering launching an advertising component on Apple TV+. Cady was hired by Apple in March 2024. Cady is not the first such hire. Apple has hired a number of other people with experience in this space, starting with Lauren Fry who joined the company in February 2023 to “help build a video advertising business for its Apple TV Plus streaming service,” according to The Information.

Apple is no stranger to ad-supported TV. The company has previously run ads on Apple TV+ during Major League Soccer and Major League Baseball games. MLB games are included in the standard Apple TV+ subscription, while MLS costs $12.99/£12.99 per month or $79/£79 per season for existing Apple TV+ subscribers.

The need to introduce an ad funding tier is seen as a response to the cost of living crisis, coupled with the increase in platform prices, which has led customers to cancel their subscriptions. The cheaper ad funding tiers are likely an attempt by streaming companies to increase revenue and retain subscribers.

Apple has increased the price of the Apple TV from $4.99/£4.99 to $6.99/£6.99 in October 2022, and then to $9.99/£8.99 in October 2023.

Kantar figures for July 2024 show that in the UK, Apple attracted more new subscribers to its platform than any other streaming service in the last six months, but it has now fallen to fourth place with a 12% market share. Kantar figures also show that the number of UK households with at least one paid video streaming service is falling.