By Apple is allegedly contemplating the addition of advertisements to its streaming service, Apple TV+, which could terminate its distinction as the sole major ad-free streaming platform. As reported by The Telegraph, recent conversations between Apple executives and Barb, the UK’s TV ratings organization, indicate that Apple is investigating methods for tracking ads on its platform.
According to The Telegraph, discussions with Barb, which currently tracks viewing time for Apple TV+ content, suggest that new data collection methods might be required to measure advertising metrics. This strategy would align Apple with competitors such as Netflix, Disney, and Amazon Prime, who have recently introduced ad-supported tiers on their platforms.
Apple TV+ Considering Ad-Supported Model Amid Industry Shifts
- The Telegraph notes that in March, Apple hired Joseph Cady, a former NBCUniversal advertising executive, to bolster its ad division. Previously, Apple experimented with advertising by selling ad spots around its Major League Soccer coverage last year for up to $4 million (£3.1 million).
- This potential shift towards advertising comes as streaming services aim to increase revenues and subscriber growth amid the cost-of-living crisis and heightened competition. According to The Telegraph, Netflix recently reported record revenues of $9.6 billion in its latest quarter, partly due to a 34% increase in subscribers to its ad-supported tier.
- Despite these efforts, Apple is facing challenges, including a reported cutback in production spending after investing over $20 billion in original content. The Telegraph highlights recent data from Kantar indicating a slowdown in subscriber growth, with Apple TV+ dropping to fourth place in new UK subscriber acquisitions after holding the top spot for six months.
- The Telegraph also reports that Netflix and Disney have been tracked by Barb for several years, while Amazon joined the ratings agency in May.
