An ad-supported tier may eventually be in the works, maybe as early as next year, according to reports that Apple has spoken with media agencies and network executives about the possibility of selling ad time on its Apple TV+ streaming service.
Todd Teresi, Apple’s head of advertising, is said to have held negotiations with holding company executives to sell video advertising space, and additional meetings are apparently planned for 2022, according to DigiDay. According to the story, which cites an unnamed source, Apple has not requested that one agency’s network set aside client funds for the fourth quarter, indicating that the ad time may become available in the early months of 2023.
By extending its advertising to more applications and services, Apple hopes to treble its ad revenue from $4 billion annually to double-digit figures. Apple officials obviously perceive TV+ as having unrealized potential.
Apple currently distributes its advertising across display adverts for apps in the App Store, News and Stocks apps, and on iPhone, iPad, and Mac.
Even though MLB sells the advertising spots throughout the streams of Friday Night Baseball, Apple already makes money on Apple TV+ with those adverts. Major League Soccer will move in exclusively in 2023, and during the following ten years, Apple and MLS will share advertising and sponsorship contracts.
It’s unclear how Apple plans to integrate advertisements into its $4.99 per month TV+ streaming service, but if it follows Netflix and Disney+ by offering an ad-supported tier, it could potentially be a significant cash generator.
Compared to other streaming services, Apple still has a small selection of original material, making it difficult for them to attract as many subscribers as Hulu, Netflix, and Disney+. Apple may raise its poor audience numbers by providing an ad-supported or even free membership option without compromising its dedication to high-quality original television and movie content.
Every time Apple increases its sports services, a new window of potential for ad revenue opens up. It remains to be seen whether the ad sales strategy that results from these actions will fundamentally alter how TV+ is viewed as a player in the streaming services industry that prioritises privacy.
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