Maya Robertson
Apple is actively exploring the introduction of advertisements on Apple TV+ in the United Kingdom, signaling a significant shift in its streaming service strategy. According to reports from The Telegraph, the tech giant is in discussions with the UK’s Broadcaster’s Audience Research Board (BARB) to develop data collection methods essential for monitoring advertising effectiveness.
Currently, BARB provides viewing statistics for major UK networks such as the BBC, ITV, Channel 4, and Sky, along with Apple TV+ content. These new talks indicate that Apple is gearing up to launch an ad-supported tier on its streaming platform, mirroring strategies employed by competitors like Netflix, Disney+, and Amazon Prime Video.
Although BARB already tracks viewing time for Apple TV+ shows and movies, additional techniques are needed to accurately measure advertising metrics. This information is crucial for advertisers to evaluate the reach and impact of their campaigns on the platform. Besides the UK, Apple is reportedly engaging in similar discussions with ratings organizations in the United States to ensure comprehensive advertising data collection.
Apple has dipped its toes into advertising within its live sports broadcasts, such as Major League Soccer coverage last year, where ads were shown even to Season Pass holders. In a strategic move to strengthen its advertising capabilities, Apple hired Joseph Cady, a former NBCUniversal advertising executive, in March.
The success of ad-supported tiers by competitors like Netflix and Disney+ has not gone unnoticed. These platforms have managed to attract more subscribers and boost revenue through their lower-cost, ad-supported plans. Netflix, for example, recently reported record revenues, driven in part by a 34% increase in subscribers to its ad-supported tier.
This shift towards an ad-supported model comes at a time when Apple is reportedly scaling back its spending on Apple TV+ content after investing over $20 billion in original programming. An ad-supported tier could provide a new revenue stream for Apple, helping to offset the reduced content expenditure while still expanding its subscriber base.
As Apple navigates these changes, the move to incorporate ads could significantly alter the viewing experience on Apple TV+. It will be interesting to see how Apple balances the integration of advertisements while maintaining the premium feel of its streaming service. This strategic pivot highlights the evolving landscape of streaming services, where even premium providers are considering ad-supported models to enhance revenue and subscriber growth.
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