Apple TV+ may introduce ads soon

Apple is reportedly considering introducing advertising on its streaming service, Apple TV+, potentially ending its status as the only major ad-free streaming platform. According to The Telegraph, recent conversations between Apple executives and Barb, the British TV ratings organization, suggest that Apple is exploring options to track advertising on its service.

The Telegraph reports that the discussions with Barb, which already monitors viewing time for Apple TV+ content, suggest that additional data collection techniques may be needed to capture advertising metrics. The move puts Apple in line with rivals Netflix, Disney and Amazon Prime, which have recently launched ad-supported tiers on their platforms.

In a related development, The Telegraph notes that Apple in March hired Joseph Cady, a former NBCUniversal advertising executive, to bolster its advertising department. The company has experimented with advertising before, selling ad spots around its Major League Soccer coverage last year for up to $4m (£3.1m).

The potential shift to advertising comes as streaming services try to boost revenue and subscriber growth amid the cost-of-living crisis and increased competition. The Telegraph highlights that Netflix recently reported record revenues of $9.6 billion in its most recent quarter, attributed in part to a 34% increase in subscribers to its advertising tier.

However, Apple is facing challenges as it reportedly begins to curb production spending after investing more than $20 billion in original content. The Telegraph cites recent data from Kantar suggesting a slowdown in subscriber growth, with Apple TV+ dropping to fourth place in UK new subscriber acquisitions after holding the top spot for six months.

According to The Telegraph, Netflix and Disney have been monitored by Barb for several years, while Amazon joined the ratings agency in May.