The news of a possible ad-supported tier comes as Apple TV is also reportedly talking with Paramount about a possible bundle of their streaming services. — The New York Times
Apple may be looking to ad an ad-supported tier to its Apple TV+ streaming service, but US users aren’t likely to see any changes anytime soon.
The Telegraph reports Apple has met with the Broadcaster’s Audience Research Board, the UK’s television ratings organisation, about bringing advertising to Apple TV+ in that country. There are no reports that the company plans to unveil an ad-supported tier in the US or elsewhere, however.
Apple did not immediately respond to Fortune’s request for comment on the report.
Apple TV+ already has some commercials on its service, but only for live sporting events like Major League Soccer. Unlike Netflix, Amazon Prime, Disney+, and virtually every other streaming service, though, it does not offer a lower-cost ad-supported monthly option for subscribers. (Those additional offerings have proven quite popular with users, resulting in higher subscriber counts.)
Apple has taken some steps in recent months that indicate it is considering an ad-supported subscription model, however. Earlier this year, the company hired Joseph Cady, who previously servied as EVP of advanced advertising and partnerships at NBCUniversal. That came after a number of prominent hires of people with experience in television advertising.
Ad-supported tiers not only have boosted subscriber counts for other streaming services, they’re a good source of additional revenue for the companies.
The news of a possible ad-supported tier comes as Apple TV+ is also reportedly talking with Paramount+ about a possible bundle of their streaming services. As subscriber churn has continued to be a problem for many streamers (and viewers have grown weary of the cost of these services), a growing number are teaming up to offer lower-priced options to consumers.
Just last week, Disney+, Hulu, and Max unveiled a bundle that offered savings of up to 38% over the stand-alone pricing of those services for viewers. – Fortune.com/The New York Times
