This way, it is easier to count the number of streaming services that have not set up a subscription program. Disney is doing it, as is Netflix, and of course, the likes of Hulu and HBO Max have had their own for a while. Apple TV Plus might be able to join them all.
According to a Digiday report (opens in a new tab), Apple intends to begin selling ad inventory sometime in early 2023. Specifically this content is reportedly about further monetizing the company''s original video content. In short, it reportedly sounds like commercials might come to Apple TV Plus sometime in the near future.
Typically, ad-supported streaming has evolved to provide content for a lower monthly cost than ad-free tiers. That being said, the idea is that ad-revenue decreases user payoffs. That''s assuming the company doesn''t pull a Disney Plus, increase costs for an ad-free tier, and lower the initial cost tag on the one with ads.
Considering Apple TV Plus costs $5 per month, which is staggeringly low by streaming standards, this is why Toms Guide is very concerned about potential price rises. Especially given Apple''s growing library of high-quality content.
Apple TV Plus already earns ad revenue due to its stream of Friday night baseball games. Despite this, the MLB has sold the spots rather than Apple itself.
This move into an ad-territory might less be about adding an ad-supported Apple TV Plus subscription, but rather about taking a more proactive role in selling ads in sports live streams. Especially since Apple now has exclusive rights to Major League Soccer games, as well as a share of advertising space and sponsorship.
Given how much space it is for sports, and the possibility to generate money by having the right to do so, it is unlikely that Apple will stop there.
According to a source, Apple met with Digiday to discuss advertising opportunities in sports programming, and there was no discussion about a popular Apple TV Plus product. It could also be discussed in future discussions, but adding advertising would only happen if Apple is able to do it without doing anything to protect their relationship with their customers.
Apple had planned to integrate its TV wing with an in-house demand side platform, which provides a method of automation and assists advertisers in purchasing ad space at the lowest possible cost. However, such a system might be less about monetizing Ted Lasso and more about increasing revenue from live sports.
There are still a lot of concerns at this point, and Apple is rarely in the mood to comment on rumors or speculation. Certainly, the company had been considering a brand-supported tier for Apple TV Plus, although the rest of the streaming industry has begun engaging in ads. However, there is a reason to believe that it isn''t happening, and meetings with advertisers are meant to improve the performance of Apple''s live sports.
If and when we hear it, here''s how to go. We will be sure to provide you any new information about the possibility of having a ad-supported Apple TV Plus subscription.