Apple is reportedly exploring the introduction of advertisements on its streaming platform, Apple TV+, which would mark a significant shift from its current ad-free model. According to a report by The Telegraph, re cent discussions between Apple executives and Barb, the UK’s television ratings organization, indicate that the company is considering methods for tracking advertisements on its service.
According to The Telegraph reports, recent discussions with Barb, the UK’s TV ratings organization that already tracks viewing time for Apple TV+ content, suggest that new data collection methods might be required to measure advertising performance. This potential shift would align Apple with rivals such as Amazon Prime, Netflix, and Disney, which have recently introduced ad-supported tiers on their platforms.
In a related move, The Telegraph reports that to strengthen its advertising division Apple hired Joseph Cady, a former advertising executive from NBCUniversal, in March. This follows Apple’s previous experiment into advertising, where it sold ad spots for its Major League Soccer coverage last year, fetching up to $4 million (£3.1 million).
Notably, to increase revenue and subscriber numbers amid economic pressures and rising competition, streaming services are moving towards introducing advertising options. Reports from The Telegraph point out that Netflix recently achieved record revenues of $9.6 billion in its latest quarter, driven in part by a 34% surge in subscribers to its ad-supported tier.
However, after investing over USD 20 billion in original content Apple faces challenges as it reportedly begins to curb production spending. The Telegraph highlights recent data from Kantar, which shows a slowdown in subscriber growth for Apple TV+. Once leading new subscriber acquisitions in the UK for six consecutive months, the service has now fallen to fourth place.